Disney has agreed to hire the majority of Character.AI’s workforce, according to a recent filing reported by TechCrunch AI. The filing indicates that the “vast majority” of Character.AI employees who received job offers from Disney have accepted them.
However, the agreement is structured as a stalking horse bid, meaning another company could potentially come forward with a higher offer. A stalking horse bid typically sets a baseline price in bankruptcy or distressed asset sales, establishing a floor for competing bids while giving the initial bidder certain protections and advantages in the process.
The arrangement represents a significant development for Character.AI’s workforce, providing employment continuity for most of its employees. The exact number of employees affected and the specific terms of the employment offers were not disclosed in the available information.