Character.AI said Monday it began a court-supervised sale of assets, including a license of certain intellectual property, and is seeking approval of auction rules that name Disney as the lead bidder. Disney's $20 million offer sets a floor, and rival bidders can submit higher offers. The company expects the process to finish in late November or early December 2026. Character Technologies listed estimated assets and liabilities of $50 million to $100 million. CEO Colin Adams said the board concluded the sale process offered the best chance to maximize value for stakeholders. The company plans to keep the platform running with minimal disruption during the sale, and says it will be wound down if no buyer is willing to continue operating it. For founders, the case shows how thin the exit can be for a consumer chatbot company. The lead bid is for an IP license rather than the whole business, a data point for anyone building consumer companion or character apps and modeling downside outcomes.