Peter Jackson Settles With New Line, Will Produce "The Hobbit"

AP:

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.

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