Jackson back in 'Hobbit' via NL, MGM

December 19, 2007 New Line and Peter Jackson have resolved their differences over the filmmaker's profit participation in the $3 billion-grossing "Lord of the Rings" trilogy, paving the way for a two-film adaptation of Tolkien's children's masterpiece. New Line and MGM, which holds the "Hobbit" feature rights, have pacted to co-finance and co-distribute the movies, with New Line handling North American and MGM international distribution. Tuesday's announcement comes in the wake of a so-so performance from another potential New Line franchise, "The Golden Compass," which so far has only grossed $41 million domestically, leaving the possibility of two more installments up in the air.

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