0
Good News is Peter Jackson is confirmed to return.
Bad News is that he won't be directing, just producing.
Peter Jackson, director of The Lord of the Rings trilogy, is set to produce a two-film adaptation of The Hobbit.
Jackson and New Line have been at each other's throats for years, with New Line at one point vowing to not let Jackson be involved with The Hobbit. Luckily for the fans now, the two sides have made up.
Jackson will be the executive producer of both films. No director has been selected yet. Both films will be shot together. The hope is to have the first film out in 2010 with the second film out in 2011.
"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. "We are delighted to continue our journey through Middle-earth."
The Hobbit is a prequel of sorts to The Lord of the Rings trilogy.