On 4 November 2026, the U.S. Bankruptcy Court for the District of Delaware approved the bidding procedures for Character.AI's Chapter 11 asset sale (Docket No. 106), per reporting by Blockchain.News on the court filings. The order sets the framework for a section 363 sale of substantially all of Character Technologies' assets.
Disney Worldwide Services is designated the stalking-horse (lead) bidder at $20 million for a technology-licence transaction covering specific 'Disney Target Assets,' with a $700,000 break-up fee and a $21.7 million minimum competing bid. Bids are due by 24 November 2026, objections by 18 November, the auction is scheduled for 1 December 2026, and the sale hearing for 3–4 December. The platform remains online and subscriptions unchanged while the process plays out.
This is the next step after Character.AI's 12 October 2026 Chapter 11 filing and is the clearest signal yet of how uneven the companion market has become — one of its defining apps is being sold under court supervision while rivals raise at billion-dollar valuations. See our Character.AI review for background and our 2026 industry report for how the category is consolidating.