After months of rumor-mongering, this morning an exciting press releases ended up on our desks. MGM, New Line and Peter Jackson will co-produce The Hobbit based on J.R.R. Tolkien’s novel. In addition the trio will also co-produce a sequel to the hobbit, which serves as kind of a bridge between “The Hobbit” and “The Lord Of The Rings” trilogy, somewhere in the vein of Tolkien’s book “Silmarillion.”

Peter Jackson will direct the films also and write them with his long-time partner Fran Walsh. Both films will be shot simultaneously and production on both movies will start immediately for a planned 2010 and 2011 theatrical release.