The Hobbit Movie Being Made But By Who?
Reported by Outsiders - 05:02 AM 2004.07.19
It looks like a film version of "The Hobbit" - the prequel to "The Lord of the Rings" for the uninitiated - will indeed be turned into a film - it just won't be at New Line.
Variety reports that it is looking more and more likely that Time Warner, which owns Warner Bros. Pictures and New Line Cinema, will swoop in and purchase MGM, after Sony was unable to construct a final offer for the company.
Buying MGM would give Time Warner a nice little bonus - worldwide theatrical and television rights to J.R.R. Tolkien's "The Hobbit". New Line, which has released "The Lord of the Rings" trilogy, would be able to pursue the film after all, if things work out.
"Rings" director Peter Jackson, who's currently working on Universal's King Kong, has continued to show interest in making "The Hobbit" as well.
Apparently the Time Warner deal is cleaner (one buyer offering Time Warner stock) and more tax-efficient. Sony has said that there were "some complications" and that "it's up to MGM management now."
The holdup actually isn't on the MGM side at all, but still resides at Sony. Sony and its two equity partners, Texas Pacific and Providence Equity, are struggling to get onto the same page.