Warner Brothers to Distribute 'The Hobbit'

As you're probably aware, the once powerful studio symbolized by the king of the jungle is going through some tough financial times.  MGM is coming out of bankruptcy despite having some of the most well known properties in the film industry.  Kind of makes you appreciate Lucasfilm more doesn't it?

Still, MGM has one more trick up its' sleeve in Peter Jackson's The Hobbit.  However, it seems that they only have the funds to complete half of the two-picture project which is why they sold the entire distribution rights to the most successful studio in Warner Brothers, in exchange for a loan to finance the other half of the film.  

In MGM's bankruptcy papers, the company stated that they were $270 million shy which means the film will cost a whopping $540 million to produce.  After selling off both the domestic and international distribution rights, all MGM has left are the international television licensing rights.

The films will be released in December 2012 and 2013 and will be in 3D.

50/50 that this film will be made.

Comments

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