Fresh Hobbit news straight from New Zealand: For a while it looked like New Line Cinemas and Peter Jackson were unable to iron out their differences and that the filming of The Hobbit would be entrusted into someone else’s hands. But today Jackson and and Hollywood studios New Line Cinema and Metro-Goldwyn-Mayer Studios announced that they had resolved their legal dispute. Jackson and partner Fran Walsh will serve as executive producers on not one but two (?) Hobbit movies.

Pre-production will begin as soon as possible and both will be shot simultaneously, tentatively in 2009. The Hobbit is likely to be released in 2010 and the sequel in 2011.

Jackson sued New Line in 2005 for unpaid profits, estimated to be about US$100 million, from the Lord of the Rings trilogy, which became a stumbling block to his being involved in The Hobbit.

Jackson and New Line said in the announcement that they had settled all legal action. “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. “We are delighted to continue our journey through Middle-earth.”

A decision still has to be made on who will direct the films, who will be cast and where they will be filmed.

This is great news. Jackson did such a great job with the Lord of the Rings movies that I was really not happy with the idea of someone else taking over for The Hobbit. I am intrigued by the mention of two Hobbit films in the announcement. I assume that means they will film the book in two parts. So, Tolkien fans, what do you think?

Update: According to this press release at TheOneRing.net, it looks like the second movie will be a sequel to the Hobbit rather than just the second half of the book.

Quick facts:

• The Hobbit, by JRR Tolkien, was published in 1937, and tells the story of Bilbo Baggins before the events of The Lord of the Rings. It relates how Bilbo met the wizard Gandalf, fought Smaug the dragon, and found the One Ring.
• The Lord of the Rings trilogy has made about US$3 billion at the box office and another US$1 billion in DVD sales. Between them, the films won 17 Oscars.

HT: Instapundit