Peter Jackson To Produce "The Hobbit"

This is hot off the presses.

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.”

Peter Jackson is set to oversee the film adaptation of “The Hobbit.”

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 definitely glad that Peter Jackson is involved in this project. I think the potential to completely screw it up, especially given the commercial success of the first trilogy, is huge.