Disney has agreed to make employment offers to at least 60 Character.AI employees, described as a majority of the chatbot company’s workforce, according to an Oct. 18 report on a bankruptcy-court filing. The offers carry estimated annual compensation of about $60 million, and the filing says most of those offered roles accepted. The figure is an estimate, not a disclosed final payroll total. [1] [2]
Hiring is part of a proposed sale
The job offers are connected to a proposed transaction in Character Technologies’ Chapter 11 case, not a completed acquisition of the entire company. Disney is the stalking-horse bidder, whose agreement sets a baseline for a court-supervised sale where higher or better offers may still compete. The filing says Disney’s proposal covers selected assets, including a perpetual, worldwide, nonexclusive license to certain intellectual property and related technology. [2]
The proposed cash consideration is $20 million. The filing states that $7.5 million had been paid before the bankruptcy petition, including a refundable $2 million deposit. The agreement also includes transition services, allowing some employees to support operations and the sale process. The court must approve the transaction, and other bids may alter the outcome. [2] [3]
The platform’s future remains unresolved
Character Technologies filed for Chapter 11 protection on Oct. 12, citing development costs, potential litigation liabilities and regulatory engagement. The company said it intended to continue operating the Character.AI platform during the court-supervised sale process, while warning that the service could be wound down if no buyer supports continued operation. [3] [4]
Character.AI said it anticipated completing the sale process in late November or early December 2026. That timetable is a company expectation, not a court-confirmed closing date. [4]
The proposed arrangement points to a possible split between talent and product: Disney may bring a large portion of the team into its organization, while the fate of the consumer chatbot platform depends on the bankruptcy sale. The employment offers alone do not establish who will ultimately own all company assets or whether the service will continue long term.
Sources
[1] TechCrunch: Disney agrees to hire the majority of Character.AI’s workforce
[2] Character Technologies bankruptcy-court motion
[3] Reuters: Character.AI files for bankruptcy, agrees to sell some assets to Disney
[4] Character.AI: Chapter 11 proceeding announcement
