According to Reuters, the virtual character chat platform Character.AI filed for bankruptcy protection in the United States on Monday local time and agreed to sell some assets to The Walt Disney Company for $20 million (approximately 134 million yuan). The company has now initiated the asset sale process under Chapter 11 of the Bankruptcy Code, preparing to divest a batch of intellectual properties, while applying to the court for approval of auction rules and designating Disney as the "primary bidder."
The key to this arrangement lies in the pricing power: Disney's $20 million offer will serve as the minimum price for the auction, allowing other interested parties to bid higher. According to Character.AI's expectations, the entire transaction is expected to be finalized between late November and early December 2026.
The Platform's Survival Depends on the Acquirer
During the asset disposal period, Character.AI has promised to keep its existing operations running normally, minimizing disruption to users. However, the company has also reserved a contingency plan: if no buyer is found to take over the entire platform, it will gradually shut down the relevant businesses.
As a virtual character interaction community driven by large language models, Character.AI boasts millions of AI characters created by users and official teams, ranging from anime and game characters, historical figures, to original fictional protagonists. Now reaching the point of bankruptcy, it reflects the general difficulties of the chatbot industry, which is characterized by continuous investment and challenges in commercialization. It also indicates that Disney, holding a vast IP portfolio, is seizing the opportunity to acquire high-quality assets at a low cost. Whether Disney will take it all or face higher bidders remains to be seen by the end of the year.
