From The Next Web · Ana-Maria Stanciuc · · 1m 20s
Disney to spend $180M on Character.AI staff after bankruptcy
Disney is hiring Character.AI employees as the chatbot platform files for Chapter 11, with pay and retention costs totalling $180M over three years.
In brief
Disney is hiring Character.AI employees as the chatbot platform files for Chapter 11, with pay and retention costs totalling $180M over three years. Disney is acquiring Character.AI's technology and hiring up to 66 staff for $180M over three years as the platform enters Chapter 11 bankruptcy protection. Originally…
Disney's $180M Character.AI deal
Disney expects to spend about one hundred eighty million dollars over three years on Character.AI staff it is hiring, covering pay and retention, a bankruptcy court filing shows.
The pay package breakdown
Disney estimates yearly pay for about sixty five employees at roughly sixty million dollars, including salary, bonus and Disney stock. It will also fund a thirty million dollar retention pool.
Why Character.AI needed a buyer
Character.AI faced mounting employee attrition, uncertain equity value and shrinking cash. The market for AI talent is extremely competitive. Potential buyers cited litigation and regulatory risks as barriers.
“The litigation and regulatory overhang on Character was too great.”
Disney's bankruptcy condition
Disney required the transaction be fully consummated in a Chapter eleven sale process, citing Character.AI's shrinking cash and litigation and regulatory risks. Disney takes on none of the company's liabilities.
“Disney required that the transaction be fully consummated in a chapter 11 sale process.”
Auction timeline and next steps
Rival bids are due by twenty November. If any arrive, an auction follows on twenty three November, with a sale hearing on twenty four November. If no buyer emerges, Character.AI will wind down.
What to remember
Disney is acquiring Character.AI's technology and hiring up to 66 staff for $180M over three years as the platform enters Chapter 11 bankruptcy protection.
