Back in August, we mentioned that there was a rumor that New Line CEO Bob Shaye was interested in getting Jackson "creatively involved" in the Hobbit project. This, despite the fact that Jackson was screaming foul at New Line's dubious accounting practices which have apparently screwed Jackson out of millions of dollars he claims he is owed.
Now it looks like the rumors were true and Jackson is back on board, helping to produce two films based on Tolkein's early works.
And Mr. Shaye seems to want to point fingers elsewhere for what caused the rift between the two entities:
"All these lawyers were going crazy not letting the principals communicate directly, when we might have been able to solve this years ago. Movies are difficult enough to make without having a war going on," Shaye continued. "The settlement was done with the idea that the good spirit that nurtured the first three films can continue. I hope we can revive what was once a wonderful relationship."
Sam Rami (Spiderman) is set to direct the films that will be shot back-to-back, most-likely at Jackson's Kiwi Stages in Austrailia sometime in 2009.