Process

Stalking horse bids for data, code and IP

In a bankruptcy auction, the stalking horse is the opening bidder who signs up before the auction starts, so everyone can see the minimum price.

The most public example for data and code is Disney's $20M bid in Character.AI's case.

AI Data Offers research deskChecked against our methodology Updated October 28, 2026 2 min read 5 sources

In this guide

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What Disney's term sheet covers

For $20M, Disney gets non-exclusive rights to Character.AI's software and patents. The app, brand, user data, user prompts and responses, and trained models stay out. The opening offer buys technology rights and nothing more.

It is a Delaware case, No. 26-11603 (BLS). Bids close 2026-11-20, the auction is set for 2026-11-23 and the sale hearing for 2026-11-24. See Character.AI's bankruptcy.

Why a non-exclusive floor helps

Since Disney's rights are non-exclusive, the estate can still license the same software to other parties. That opens the door to extra buyers and extra money, and the riskiest data stays out of the opening deal.

For a data archive, the same logic applies. A non-exclusive or narrowly scoped first bid lets you test demand without giving away the whole asset.

Spirit had no stalking horse

Spirit ran its data auction without a floor bid. Google went from $5.0M to $10.0M to win, and micro1 offered $12.5M once bidding was over. Had a committed floor been set beforehand, that late bidder might have shown up in time. This is our interpretation, and no court has said so.

Setting a floor for a data lot

Ask two or three data buyers for indications before choosing a stalking horse
Define the scope: which systems, which years, which datasets excluded
Decide exclusive or non-exclusive up front
Put the de-identification method in the term sheet
Agree break-up fee and expense terms with counsel

FAQ

Questions, answered

What is a stalking horse bid?

An opening bid locked in before an auction starts, setting the minimum any rival has to top.

What does Disney's bid cover?

Non-exclusive rights to Character.AI's software and patents for $20M, with user data and the brand left out.

Did Spirit's data sale have a stalking horse?

No. Bidding opened at $5.0M at the auction itself.

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