# Character.AI Files Chapter 11 With Proposed $20 Million Disney Sale

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/30912
Published: 2026-10-13T07:52:09.000Z
Updated: 2026-10-13T07:52:09.000Z
Section: Business

> The court-supervised process covers selected assets and intellectual property licenses, while the platform is expected to continue operating.

Character.AI filed for Chapter 11 bankruptcy protection in the United States on Monday and agreed to sell selected assets to Disney for $20 million, launching a court-supervised restructuring of the consumer AI platform.

The proposed transaction includes licenses for some intellectual property. Disney’s offer will establish the baseline bid, allowing other potential buyers to submit higher offers under court-approved auction rules.

Character.AI plans to continue operating during the proceedings, including its platform for AI-powered character conversations. CEO Colin Adams said the board determined that a court-supervised sale offered the best way to maximize value for stakeholders after reviewing its options.

Court filings list estimated assets and liabilities for Character Technologies, the U.S. company that owns the platform, at $50 million to $100 million each. The sale process is expected to finish in late November or early December 2026.