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Character.AI files Chapter 11, Disney bids $20M as stalking horse

Character.AI filed a voluntary Chapter 11 case in Delaware on Oct. 12 and is seeking to sell all or nearly all assets. Disney is the $20M stalking horse for a non-exclusive license to certain IP, subject to higher bids. The company says the platform keeps running, with a sale expected in late November or early December. Details are from the company's announcement as relayed by Unite.AI.

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Made the five · #4 on Tuesday, October 13, 2026

Character.AI files for Chapter 11, Disney bids $20M

Primary source

Unite.AI (relaying Character.AI)unite.ai/character-ai-files-for-chapter-11-with-disney-stalking-horse-deal/

Coverage · 44 articles, oldest first

Tuesday, October 13, 2026

  1. Reuters

    Character.AI files for Chapter 11 bankruptcy in the US, agrees to sell some assets to Disney for $20M, and plans to keep operating as it completes the sale

  2. Character.ai

    businesswire.com/news/home/20261012656385/en/

  3. Channel NewsAsia

    channelnewsasia.com/business/characterai-files-bankruptcy-agrees-sell-some-assets-20-million-6454941

  4. Unite.AI

    unite.ai/character-ai-files-for-chapter-11-with-disney-stalking-horse-deal/

  5. Spyglass

    spyglass.org/google-no-character-ai/

  6. Forbes

    forbes.com/sites/siladityaray/2026/10/13/characterai-files-for-bankruptcy-disney-bids-20-million-after-copyright-dispute/

  7. character.ai blog306 pts on HN

    blog.character.ai/an-update-on-character-ai/

  8. Neowin

    neowin.net/news/characterai-files-chapter-11-bankruptcy-as-disney-leads-20m-asset-bid/

  9. The Verge

    theverge.com/ai-artificial-intelligence/1009802/character-ai-files-for-bankruptcy-disney

  10. Business Insider

    businessinsider.com/character-ai-files-for-bankruptcy-legal-headwinds-disney-google-chatbots-2026-10

  11. The Hollywood Reporter

    hollywoodreporter.com/business/digital/disney-may-buy-character-ai-chatbot-chapter-11-bankruptcy-1236728629/

  12. Cord Cutters News

    cordcuttersnews.com/disney-just-bankrupted-a-massive-ai-company-it-accused-of-violating-its-copyright/

  13. Reuters

    nbcnews.com/tech/tech-news/characterai-files-bankruptcy-sell-assets-disney-20-million-rcna603174

  14. Fast Company

    fastcompany.com/91622790/character-ai-bankrupt-chatbot-platform-sell-disney

  15. Quartz

    qz.com/character-ai-bankruptcy-disney-bid-assets-101326

  16. Variety

    variety.com/2026/biz/news/disney-bids-on-character-ai-assets-chapter-11-bankruptcy-1236909984/

  17. The Wrap

    thewrap.com/industry-news/tech/disney-character-ai-chatbot-bankruptcy-deal/

  18. PYMNTS.com

    pymnts.com/business/2026/character-ai-files-for-bankruptcy-and-signs-20-million-disney-deal/

  19. Deadline

    deadline.com/2026/10/disney-character-ai-chapter-11-bankruptcy-1237155582/

  20. CBS News

    cbsnews.com/news/character-ai-files-bankruptcy-disney-license/

  21. CNBC

    AI companion startup Character.ai files for Chapter 11 bankruptcy, citing costs and litigation

  22. Gizmodo

    gizmodo.com/character-ai-files-for-bankruptcy-weeks-after-disney-hired-its-former-ceo-2000825281

  23. CNN

    cnn.com/2026/10/13/tech/character-ai-bankruptcy-filing

  24. Techstrong.ai

    techstrong.ai/articles/embattled-ai-startup-character-ai-files-for-chapter-11-bankruptcy-disney-submits-lead-20-million-bid/

  25. Futurism

    futurism.com/artificial-intelligence/google-character-ai-bankruptcy

  26. The Wall Street Journal

    wsj.com/tech/ai/character-ai-maker-files-for-chapter-11-bankruptcy-740e6fb1

  27. Breitbart

    breitbart.com/tech/2026/10/13/character-ai-files-for-bankruptcy-2-years-after-teens-tragic-suicide/

  28. New York Post

    nypost.com/2026/10/13/business/character-ai-files-for-bankruptcy-amid-torrent-of-legal-problems-agrees-to-sell-some-assets-to-disney-for-20m/

  29. Motley Fool

    fool.com/coverage/better-buy/2026/10/13/walt-disney-vs-netflix-which-media-stock-is-a-better-buy-in-2026/

  30. Newser

    newser.com/story/398062/characterai-files-for-chap-11-with-disney-hovering.html

  31. The Information

    Character.ai Files For Bankruptcy, Citing Costs and Litigation

  32. Decrypt

    decrypt.co/380894/character-ai-bankruptcy-disney-users-grief-resources

  33. New York Post

    nypost.com/2026/10/13/tech/character-ai-files-for-bankruptcy-amid-torrent-of-legal-problems-agrees-to-sell-some-assets-to-disney-for-20m/

  34. Axios

    axios.com/pro/all-deals/2026/10/13/characterai-bankruptcy-disney-sale

  35. Los Angeles Times

    latimes.com/business/story/2026-10-13/disney-strikes-20-million-deal-for-character-ais-assets-as-ai-startup-files-for-bankruptcy

  36. Yahoo Finance

    finance.yahoo.com/technology/ai/articles/character-ai-files-bankruptcy-disney-211604619.html

  37. IN THE UNITED STATES BANKRUPTCY COURTFOR THE DISTRICT OF DELAWARE

    documentcloud.org/documents/28809489-18/

  38. The A.V. Club

    avclub.com/disney-characterai-bankrupt-bidding

  39. Associated Press

    thehill.com/newsletters/technology/6146820-musk-jumps-back-into-trumps-orbit-ahead-of-midterms/

  40. Inc.com

    inc.com/kevin-haynes/disney-accused-characterai-copyright-infringement-now-bidding-bankrupt-startups-assets/91419440

  41. The Washington Post

    washingtonpost.com/technology/2026/10/13/ai-app-that-triggered-kids-safety-fears-will-sell-assets-disney/

  42. SFist

    sfist.com/2026/10/13/disney-offers-20-million-for-character-ai-intellectual-property-amid-bankruptcy/

  43. Straight Arrow

    san.com/cc/character-ais-bankruptcy-leaves-millions-of-users-chats-in-limbo/

  44. Marcus on AI

    garymarcus.substack.com/p/it-remains-very-difficult-to-find
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