Disney Agrees to Hire Most of Character.AI's Staff in a Bid That Could Be Topped

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A court filing indicates Disney has agreed to hire the majority of Character.AI's workforce as part of a stalking horse bid for the company. The vast majority of employees who were offered jobs have accepted them, according to the filing. Because a stalking horse bid is an initial offer that rival buyers can outbid, the Disney arrangement may serve as a baseline rather than the final price. The deal is therefore a talent-focused move rather than a completed acquisition. Analysts note that users and developers relying on Character.AI's products or contracts should plan for both a Disney-led outcome and a competing bid.

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