Peace in Middle Earth

"Bilbo's finally getting a makeover"

From IMDB news:

Filmmaker Peter Jackson has signed on to produce two movies based on author J.R.R. Tolkien's The Hobbit, after resolving his legal feud with studio bosses over unpaid royalties. Jackson has been involved in a long and bitter despite with bosses at New Line Cinema after claiming he had not been properly paid following the success of the Lord Of The Rings trilogy, which he directed. But Jackson has now settled the disagreement and has confirmed he will be on board for the two new films, both of which are prequels to the Lord Of The Rings. He says, "I'm very pleased that we've been able to put our differences behind us. We are delighted to continue our journey through Middle Earth." A director for the two new Tolkien movies has yet to be announced.