According to Variety.com, MGM is continuing talks with Peter Jackson on directing the adaptation of The Hobbit. Jackson stated earlier that his lawsuit with New Line would not effect The Hobbit film though this article states otherwise. The article also brings new light into the 2-film idea in which the first film would be a direct adaptation of the book while the second film would tie The Hobbit into The Lord of the Rings. MGM is reporting similar news with a rumored production start around 2008 or 2009.
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