Hollywood Insider just received word from New Line and MGM that everything has been resolved in The Hobbit debacle between Peter Jackson (pictured) and New Line. Jackson will executive produce the pic for a 2010 release, but the studios are still in search of director. Production on The Hobbit will begin immediately, though no script has been written, which means they will have to work around the strike. A rep for MGM says, “This is a slamdunk for everybody.”

In a New Line press release to be sent out today, Peter Jackson says , “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. ‘The Lord of the Rings’ is a legacy we proudly share with Bob and Michael, and together, we share that legacy with millions of loyal fans all over the world. We are delighted to continue our journey through Middle Earth. I also want to thank Harry Sloan and our new friends at MGM for helping us find the common ground necessary to continue that journey.”

Stay tuned for more throughout the day…

Additional reporting by Nicole Sperling.

The Hobbit: An Unexpected Journey
  • Movie
  • 170 minutes
  • Peter Jackson