FROM THE NEWS ARCHIVES OF CINEMA CONFIDENTIAL

New hope for "The Hobbit"?
POSTED ON 07/19/04 AT 5:30 A.M.
BY ETHAN AAMES

Variety is reporting that "The Hobbit" could see the light of day now.

"The Hobbit" is a movie project very much on Peter Jackson's ("The Lord of the Rings" trilogy) wishlist. The problem is that the rights to the film are owned by MGM, who refuses to sell the rights to New Line.

But with reports claiming that Time Warner, which owns Warner Bros. and New Line Cinema, may purchase MGM, then the rights would be transferred to New Line, essentially allowing the studio to go forth with a movie based on J.R.R. Tolkien's "The Hobbit."

In recent weeks, Sony has made a bid to purchase MGM but has since dropped out of contention.