The Hobbit is a GO!!



Peter Jackson and New Line Cinema have reached agreement on J.R.R. Tolkien, "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, spokesmen 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."

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