According to a filing cited in the report, Disney has agreed to hire the majority of Character.AI’s workforce. The filing states that the “vast majority” of Character.AI employees who received job offers from Disney accepted them.

The arrangement is described as a stalking horse bid, meaning another company could come forward with a higher offer.

Why it matters

The move signals a potential absorption of Character.AI talent by Disney, though the stalking horse structure leaves the outcome open to competing bids.

Who should care

Employees at Character.AI, as well as companies and observers tracking consolidation and talent movement in the AI sector, have a direct interest in how this process resolves.