The Hollywood Reporter has confirmed that Guillermo del Toro (Hellboy, Pan's Labyrinth) is in talks to direct J.R.R. Tolkien's the Hobbit. The plan is the release the movie in two parts, the first based on the book, the second using his annotations to bridge the gap between the novel and the Lord of the Rings trilogy. Each movie is budgeted for arond $150 million and will be co-financed by New Line and MGM. Peter Jackson will be co-writer and Executive Producer for the films. The goal is to release the films in 2010 and 2011.
Sadly this dashes hope that Peter Jackson will direct the films, as he is unable to do so do to commitments to The Lovely Bones and Tintin.
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