Peter Jackson To Direct “The Hobbit”

NEW YORK - 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.”

Relations between Jackson and New Line had soured after the enormous success of “Rings,” but Metro-Goldwyn-Mayer Studios (MGM) helped the two sides reach agreement. MGM and New Line will split the film 50/50, a spokesman for MGM said.

“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.

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