The latest rumor comes from Jarrod Rudolph of RealGM via twitter:
Sources say Magic, Warriors & Hornets are discussing 3-team deal that would send Ellis and others to Magic. Nothing imminent at this point
Nothing is imminent, but discussion are said to be ongoing.
Magic players said to be discussed: Redick, Q.Richardson, Turkoglu, Anderson and Orton. Hornets believed to be unloading Kaman in the deal
Discussed deal would send Ellis, Dorell Wright and Andris Biedrins to the Magic, sources said.
You can follow his timeline here.
It’s tough to think about what to make about this rumor – losing Ryan Anderson and only gaining one front court player in Andris Biedrins, is tough to swallow. Anderson is an efficient scorer and an excellent rebounder. Biedrins, well, isn’t.
Ellis is an inefficient volume scorer. Yes, there are positives, with his ability to create his own shot probably being his biggest asset, but he doesn’t seem like the type of player that would put the Magic over the top, especially if they’re giving up both Anderson and J.J. Redick.
(Andrew Melnick is the ESPNFlorida.com  Magic and NBA Insider, co-host of the ESPN 1080 Insiders Show and publisher of Howard the Dunk. The Insiders Show can be heard Sunday mornings at 10:00 am EST on AM 1080 in Orlando and on ESPNFlorida.com . You can follow Andrew on twitter here.)Insider: Magic/Warriors/Hornets Deal? by Andrew Melnick