- MGM and New Line will co-finance and co-distribute two films, The Hobbit and a sequel to The Hobbit. New Line will distribute in North America and MGM will distribute internationally.
- Peter Jackson and Fran Walsh will serve as Executive Producers of two films based on The Hobbit. New Line will manage the production of the films, which will be shot simultaneously.
- Peter Jackson and New Line have settled all litigation relating to the "Lord of the Rings" (LOTR) Trilogy.
According to the report the TWO films – The Hobbit and its sequel (eh, since when was there a sequel to the Hobbit? Do I hear the fanboys screaming SACRILEGE?) – will be shot simultaneously like the three LOTR movies.
They're starting pre-production ASAP, and hoping to release The Hobbit in 2010! Woohoo! Finally, something to REALLY look forward to!!!