Disney acquires majority of Character.AI workforce and some assets for $20M on Oct 18; ex-CEO Karandeep Anand becomes Disney's first CTO
After Character.AI filed for bankruptcy, Disney submitted a stalking horse bid of $20M to acquire some assets and made offers to at least 60 employees with annualized compensation near $60M; the vast majority accepted.
On October 18, Disney agreed to hire the majority of Character.AI's workforce as the AI chatbot startup filed for bankruptcy earlier in the week. Court filings show Disney made a stalking horse bid of $20 million to acquire some of Character.AI's assets and extended offers to at least 60 employees with annualized compensation estimated near $60 million. The vast majority of those offered had accepted at time of reporting.
Former Character.AI CEO Karandeep Anand recently joined Disney as the company's first CTO — notable given that Disney had previously sued Character.AI over character likeness copying. Founded about five years ago, Character.AI had a large and engaged user base but was hobbled by high operating costs, potential litigation-related liabilities, and regulatory scrutiny over child safety.
As a stalking horse bid, other companies may still come forward with higher offers. Character.AI faces a civil suit from the mother of a 14-year-old boy who allegedly died by suicide after becoming obsessed with its platform, plus government investigations over child safety including action from the Texas Attorney General. Disney did not immediately respond to a comment request.