Disney Hires At Least 60 Character.AI Employees with $60 Million Compensation
Disney agrees to hire at least 60 Character.AI employees with an estimated annual compensation of around $60 million following the startup's bankruptcy.
Disney has agreed to hire the majority of Character.AI's workforce after the chatbot startup filed for bankruptcy, according to a court filing spotted by Bloomberg and reported by TechCrunch.
Disney pledged to extend job offers to at least 60 employees—representing the majority of the workforce—with an annual compensation valued at approximately $60 million, and the vast majority of employees who received offers accepted them.
Character.AI had previously stated that Disney agreed to acquire some of its assets for $20 million, in a deal serving as a stalking horse bid in bankruptcy proceedings during which another buyer could submit a higher offer.
The startup's former CEO, Karandeep Anand, had become Disney's first Chief Technology Officer, while Character.AI struggled with high operating costs as well as legal and regulatory liabilities related to child safety, despite its broad user base.
What do these terms mean?
Bankruptcy: A legal procedure resorted to by a distressed company to protect itself from creditors, thereby restructuring its debts or selling its assets.
Asset acquisition: A company's purchase of another company's software, contracts, or equipment, instead of buying the company itself.
Stalking horse bid: An initial bid to purchase the assets of a distressed company, after which the door is opened for higher competing offers.
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