anyone still got any doubts? prepare for a somwhat long read. full articles can be found at The LA Times link and The New York Times Link
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I know we've said this before, but this time we (might) really mean it - The Hobbit will reportedly be greenlit in the next couple of days, with Peter Jackson officially on board to direct.
[The LA Times]
The two "Hobbit" films, which will be shot together, are expected to cost close to $500 million to produce.
Negotiations between the two sides are at a very tenuous stage because nearly bankrupt MGM needs to reach agreement among its more than 100 debt owners, which control the future of the studio. At the same time, MGM's creditors are scrambling to finalize a reorganization plan, through which Spyglass Entertainment chiefs Gary Barber and Roger Birnbaum are expected to take over management. Barber has been leading negotiations on "The Hobbit" for MGM with top Warner executives, including home entertainment group president Kevin Tsujihara.
MGM is eager to make the films, people close to the situation said, and could give Warner Bros. the official okay in the next few days. However, it will still need to secure its half of the financing. Barber is expected to approach a number of potential investors, including studios including 20th Century Fox, which has an existing deal with MGM to release its movies overseas. Other possibilities include outside financial investors or Warner Bros., which could loan MGM its share in exchange for additional distribution rights to the pictures.
Updated, 4:27 p.m.: Warner and MGM have together spent about $45 million on preproduction for "The Hobbit," including script fees, visual effects work, set preparations and casting meetings, according to two people familiar with the matter.]
[The New York Times]
It remained unclear how Warner and MGM planned to apportion the financing of the project. They have owned it in a 50-50 arrangement, but by longstanding agreement, New Line has been in charge of production decisions, subject to some approvals by MGM.
A New Zealand union backed by Australia's Media Entertainment and Arts Alliance has sought to represent actors on the "Hobbit" films, and a coalition of international unions, including the Screen Actors Guild, advised members not to work on the movies because of the dispute. But New Zealand officials this week advised the producers that they could not legally bargain with its actors collectively under the country's law, which restricts such dealings with independent contractors.
For MGM, a deal that finally lets the "Hobbit" films proceed would lock in badly needed revenue as the company proceeds with a restructuring that is still far from resolved. For Warner, it means new tent-pole fantasy films just as the company is winding down its long-running "Harry Potter" series. And executives at both companies would be relieved of the building anxiety over delays that had threatened to kill the films, at least for the foreseeable future, if they could not be started by early next year.
And a few more details - the two movies will reportedly be shot in 3D, and Peter Jackson is reportedly shooting for release dates in December 2012 and 2013, because otherwise he can't fit the movies into schedule.
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