Character.ai approached about 28 potential buyers and received only one nonbinding proposal

Character.ai’s bankruptcy court declaration disclosed that, before bankruptcy, its sale process approached about 28 potential buyers and received only one proposal deemed nonbinding. Feedback pointed to litigation and regulatory burdens. Disney has prepaid $7.5 million of the $20 million transaction consideration, including a refundable $2 million deposit. Its offer covers a nonexclusive, perpetual license to some intellectual property and does not include the operating platform. The company plans to conduct a post-bankruptcy sale process lasting nearly six weeks. The latest closing date for the Disney transaction is December 17, 2026.