In what amounts to a dream come true for fans of Middle Earth, Peter Jackson has decided to direct two installments of The Hobbit, trusted sources are telling me. His deal is being negotiated right now with Warner Bros , New Line, and MGM. He will shortly take the reins over from Guillermo del Toro, after Jackson extricates himself from other project obligations that caused Jackson and manager Ken Kamins to initially deny he would direct. While Jackson's camp has been tight-lipped, I'm told that the case is being made to MGM's owners to loosen the purse strings and make the movies happen. The impetus for these talks is that Jackson will be the director of both of The Hobbit films, which will be shot back-to-back in his New Zealand backyard.
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