Disney to spend $180 million on hiring and retaining 66 former Character.AI staff
Walt Disney Co. will pay $60 million each year for three years to employ 66 former Character.AI employees, adding a separate $30 million pool to encourage them to stay. The company also intends to bid $20 million for key Character.AI assets, including intellectual property and technology. The moves follow Disney’s recent tech layoffs and are part of CEO Josh D’Amaro’s AI strategy. Disney is the stalking‑horse bidder, with other offers due by 20 Nov.
Why it matters
The $180 million compensation and retention commitment will increase Disney’s operating expenses over the next three years. The $20 million asset bid could give Disney access to AI technology and IP that may enhance its digital offerings, while the competitive bidding process may affect the final purchase price.
Key facts
- 1Disney will pay $60 million per year for three years to 66 former Character.AI employees. businessinsider.com
- 2Disney is allocating an additional $30 million to a retention pool for the hired staff. benzinga.com
- 3The total expected outlay for compensation and retention over three years is $180 million. businessinsider.com
- 4Disney has agreed to pay $20 million for Character.AI’s key assets, including IP and technology. benzinga.com
- 5Competing bids for the assets must be submitted by 20 Nov. benzinga.com
- 656 of the 66 staff have already resigned from Character.AI, while 10 await U.S. work‑visa updates. benzinga.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.