Disney will provide transition services through former Character.AI employees who joined the entertainment company last month. Character.AI says it will continue operating during the court-supervised sale process, expected to close in late November or early December. The report says there is not yet a bid for the company’s assets or a buyer for the business as a whole; absent an actionable proposal, the platform could be wound down. The transaction therefore concerns a portion of the assets and does not itself establish that Character.AI’s consumer platform will continue.
Disney bids to buy Character AI from bankruptcy: The avatar chatbot startup filed for bankruptcy last week after five years in business, citing high costs and litigation liabilities.
In one minute
TechCrunch reports that Character.AI has agreed to sell some assets to Disney for $20 million and grant a non-exclusive perpetual licence to its technology.
What changed: Adds that Disney agreed to buy some Character.AI assets for $20 million plus a perpetual non-exclusive technology license, while no asset bid or buyer had yet emerged.