Update on the Update of The Hobbit

Terrible, terrible news.

Excerpts from an E-mail to Onering.net from Peter Jackson and Fran Walsh:

However, we have always said that we do not want to discuss The Hobbit with New Line until the lawsuit over New Line's accounting practices is resolved. This is simple common sense - you cannot be in a relationship with a film studio, making a complex, expensive movie and dealing with all the pressures and responsibilities that come with the job, while an unresolved lawsuit exists.
. . .
However last week, Mark Ordesky called Ken and told him that New Line would no longer be requiring our services on the Hobbit and the LOTR 'prequel'. This was a courtesy call to let us now that the studio was now actively looking to hire another filmmaker for both projects.

Ordesky said that New Line has a limited time option on the film rights they have obtained from Saul Zaentz (this has never been conveyed to us before), and because we won't discuss making the movies until the lawsuit is resolved, the studio is going to have to hire another director.

There is speculation that New Line is simply trying to pressure Jackson into settling the lawsuit and that Jackson is pressuring them back. I hope this is the case and that common sense will prevail because, frankly, I doubt many of the principals (McKellan, Sirkis, etc.) would return to make The Hobbit if Jackson isn't involved. The fanbase will also rebel. If it's not consistent with The Lord of the Rings in character, tone, special effects and spirit, I doubt I'll go see it.

If this really represents New Line's decision and they go ahead with a non-Jackson Hobbit, I guarantee they've cost themselves between $100-200 million in box office receipts, let alone DVD revenue and merchandising.

And, by the way, I still think the idea of a fourth movie to link the Hobbit and LOTR based on appendix material sucks big time.