Getty Images and Character Technologies, the U.S. operator of Character.ai, announced on October 12, 2026, plans to begin restructuring under Chapter 11 of the U.S. Bankruptcy Code and asset-sale proceedings, respectively. Getty Images plans to file within weeks and take its shares private. Character Technologies filed the same day and is selling assets under court supervision. Both companies intend to continue operating during the proceedings, but Character.ai said it may close its platform if it cannot find a buyer able to keep the service running.

Getty Images reached a comprehensive restructuring agreement with key financial stakeholders. Affiliates of co-founder Mark Getty’s family and investment firm Koch Equity Development plan to contribute up to $533 million. The plan also cancels $270 million in unsecured notes, reduces interest costs on secured debt and extends repayment deadlines. After restructuring, the investors are expected to own all shares, making Getty Images a private company.

Getty Images plans to use a prepackaged Chapter 11 process, in which a company agrees on a plan with creditors before filing. The filing would cover only some of its U.S. entities. As of October 12, 2026, the company expected to file within weeks and complete restructuring by year-end. It said it would maintain normal operations and payments to business partners during the process, with no expected impact on content providers, customers or employees. In addition to licensing images, Getty Images offers generative AI services trained on licensed content. Materials for lenders cited debt repayment and interest, costs related to its proposed merger with Shutterstock, warrant litigation and legal expenses from its case against Stability AI as factors that strained liquidity.

Character Technologies voluntarily filed for Chapter 11 in federal bankruptcy court in Delaware and is pursuing a sale of all or substantially all of its assets. Before filing, it signed an agreement with Disney subsidiary Disney Worldwide Services that includes a nonexclusive, perpetual license for some intellectual property. The consideration is $20 million plus transition support from former Character.ai employees hired by Disney. The agreement is a stalking-horse agreement, which sets a baseline bid for an auction. Character Technologies is seeking court approval to name Disney as the initial bidder while accepting higher or otherwise more favorable offers.

CEO Colin Adams said the board chose a court-supervised sale after considering options and responding over the past year to significant legal, regulatory and operational headwinds. In a message to users, the company said its service and paid subscriptions remain active, with no changes to billing. It expects the sale process to conclude between late November and early December 2026, but plans to end the service if no sale allows the platform to continue.

Getty Images and Character Technologies, the U.S. operator of Character.ai, announced on October 12, 2026, plans to begin restructuring under Chapter 11 of the U.S. Bankruptcy Code and asset-sale proceedings, respectively. Getty Images plans to file within weeks and take its shares private. Character Technologies filed the same day and is selling assets under court supervision. Both companies intend to continue operating during the proceedings, but Character.ai said it may close its platform if it cannot find a buyer able to keep the service running.

Getty Images reached a comprehensive restructuring agreement with key financial stakeholders. Affiliates of co-founder Mark Getty’s family and investment firm Koch Equity Development plan to contribute up to $533 million. The plan also cancels $270 million in unsecured notes, reduces interest costs on secured debt and extends repayment deadlines. After restructuring, the investors are expected to own all shares, making Getty Images a private company.

Getty Images plans to use a prepackaged Chapter 11 process, in which a company agrees on a plan with creditors before filing. The filing would cover only some of its U.S. entities. As of October 12, 2026, the company expected to file within weeks and complete restructuring by year-end. It said it would maintain normal operations and payments to business partners during the process, with no expected impact on content providers, customers or employees. In addition to licensing images, Getty Images offers generative AI services trained on licensed content. Materials for lenders cited debt repayment and interest, costs related to its proposed merger with Shutterstock, warrant litigation and legal expenses from its case against Stability AI as factors that strained liquidity.

Character Technologies voluntarily filed for Chapter 11 in federal bankruptcy court in Delaware and is pursuing a sale of all or substantially all of its assets. Before filing, it signed an agreement with Disney subsidiary Disney Worldwide Services that includes a nonexclusive, perpetual license for some intellectual property. The consideration is $20 million plus transition support from former Character.ai employees hired by Disney. The agreement is a stalking-horse agreement, which sets a baseline bid for an auction. Character Technologies is seeking court approval to name Disney as the initial bidder while accepting higher or otherwise more favorable offers.

CEO Colin Adams said the board chose a court-supervised sale after considering options and responding over the past year to significant legal, regulatory and operational headwinds. In a message to users, the company said its service and paid subscriptions remain active, with no changes to billing. It expects the sale process to conclude between late November and early December 2026, but plans to end the service if no sale allows the platform to continue.