MGM, who own the distribution rights to the film version of the classic J.R.R. Tolkien novel, ‘the Hobbit’, are still trying to work things out, but legal issues remain in the way. Peter Jackson has also expressed interest in filming two movies based on the book, buuuut…
However, making the film is contingent on negotiations with New Line, which owns the right to produce “The Hobbit” (MGM owns only the right to distribute the films). And people close to Jackson say that until his ongoing lawsuit with New Line — over monies he says are owed him from the “Lord of the Rings” franchise — is settled, a serious conversation over “The Hobbit” cannot proceed.
It may be a while.