Despite the frackus between New Line Cinema and the Jacksons (Peter and Fran Walsh), MGM studios has indicated that as far as they are concerned the matter of whether Jackson will helm the two proposed Hobbit films is "far from closed."

Check out this article on the current Peter Jackson New Line Troubles. (Jackson Loses The Hobbit)

But MGM, the big guns behind the distribution rights to "The Hobbit," told Variety that "the matter of Peter Jackson directing the Hobbit films is far from closed." New Line, on the other hand, had nothing new to add.