The Ellisons may still get Warner Bros. But it won't be easy.

Larry Ellison backed the deal that let his son David buy Paramount this year. They were set to acquire Warner Bros. Discovery in the coming weeks — but a court challenge from the state of California means all bets are off. Eric Charbonneau/Getty Images for The Hollywood Reporter Larry and David Ellison bought Paramount last year. They were set to acquire Warner Bros. Discovery in the very near future. But a legal challenge from California's attorney general has thrown a big roadblock into the proceedings. Bloomberg's Lucas Shaw explains why a settlement may be difficult, how this fall's elections may affect things, and what Netflix thinks about all of this. Up until last week, just about everyone in Hollywood and Wall Street believed that Larry and David Ellison's Paramount was going to own Warner Bros. Discovery in the near future.