Peter Jackson to produce `The Hobbit'

[Dave Monroe]

By JAKE COYLE, AP Entertainment Writer
2 hours, 33 minutes ago

NEW YORK - Peter Jackson and New Line Cinema have reached agreement to
make J.R.R. Tolkien's "The Hobbit," a planned prequel to the
blockbuster trilogy "The Lord of the Rings."

Jackson, who directed the "Rings" trilogy, will serve as executive
producer for "The Hobbit." A director for the prequel films has yet to
be named.

Relations between Jackson and New Line had soured after "Rings,"
despite a collective worldwide box office gross of nearly $3 billion —
an enormous success. The two sides nevertheless were able to
reconcile, with Metro-Goldwyn-Mayer Studios (MGM) splitting "The
Hobbit" 50/50, spokemen for both studios said Tuesday.

"I'm very pleased that we've been able to put our differences behind
us, so that we may begin a new chapter with our old friends at New
Line," Jackson said in a statement. "We are delighted to continue our
journey through Middle Earth."

Two "Hobbit" films are scheduled to be shot simultaneously, similar to
how the three "Lord of the Rings" films were made. Production is set
to begin in 2009 with a released planned for 2010, with the sequel
scheduled for a 2011 release.

http://news.yahoo.com/s/ap/20071218/ap_en_ot/film_the_hobbit