While The Hollywood Reporter is reporting this exclusive news, when you boil it down, it’s really the same old thing we’ve been hearing (and reporting) for the past few weeks.
Near the end of June Deadline originally reported that Peter Jackson, Fran Walsh and Philippa Boyens would be headed to Los Angeles to look over audition tapes for “The Hobbit,” and as THR now says, meet with actors. And while THR say that Jackson is close to signing a deal to direct the films, the main sticking point remains the same: MGM hasn’t greenlit the film and is in a world of financial trouble.
As you might recall, even internally at MGM there are disagreements on whether or not the studio should sell their lucrative rights to “The Hobbit” or hang on to them. The other issue is that if MGM do indeed stay on and make the film, at the end of the day, it will not turn as big a profit as people think as up to 30% of the film’s gross will be piecemealed out to various participants and investors who get first dollar gross payments. Moreover, it’s been stated time and again that the longer this situation drags out, the more likely Jackson will be to bail and move on to other commitments.
Our guess is that Jackson and co. are getting the film as close as possible to be camera ready so that if MGM sort out their shit, they can move quickly on getting the film into production. But that is a huge “if.” The studio is seeking yet another extension on the $4 billion they owe and if they get it, that merely puts them into a position where they will either sell the studio or try and find a new partner to pump fresh money into the coffers. But either of those scenarios will take time, which is quickly running out. Despite Ian McKellan endlessly giving start dates and non-news, don’t hold you breath on this one being resolved any time soon.
