Character.ai Files for Chapter 11 Bankruptcy Protection, Disney Plans to Acquire Partial Asset Rights for $20 Million

Character.ai announced its filing for Chapter 11 bankruptcy protection in Delaware, USA, aiming to facilitate the sale of all or most of its assets. A Disney subsidiary has agreed to acquire a non-exclusive, perpetual license for certain intellectual property and related claims for $20 million and transitional services, serving as the initial bidder. The transaction remains open to higher offers. The sale is expected to be completed by late November or early December. During this period, the platform intends to continue operations; however, if no buyer is found to support the platform's ongoing operations, it will gradually shut down.