Character.AI gets court approval for sale bidding rules; Disney stays stalking-horse bidder
On November 5, Character Technologies (Character.AI) said the Delaware bankruptcy court entered a Bidding Procedures Order on November 4 (Case No. 26-11603, Docket No. 106). The company seeks to sell substantially all assets under Bankruptcy Code section 363. Disney Worldwide Services remains the stalking-horse purchaser for the Disney Target Assets under an October 13 agreement; other assets may get additional stalking-horse bidders. Key dates: sale objections by November 18, bids by November 24, an auction on December 1, and a sale hearing on December 3 and December 4 (Eastern Time). No purchase price appears in the official notice.
Why it matters
A once-leading consumer chatbot firm is now in a court-run auction with Disney as stalking horse—structure news for IP, talent, and rivals.
Sources2
Written by dalao.ai: the title, summary and why it matters are our own words. The original reports are the record; their publishers keep authorship.