Cool. The maker of the Lord of the Rings movies will produce “The Hobbit” and a sequel.

From Reuters:

Jackson and studios agree to make Hobbit films

LOS ANGELES (Reuters) – After months of bitter legal wrangling, Peter Jackson, New Line Cinema and Metro-Goldwyn-Mayer Studios Inc have agreed to make two movies based on the book “The Hobbit” by J.R.R. Tolkien.

In a statement Tuesday, the companies said Jackson, the director of the smash hit “Lord of the Rings” movies, and producer Fran Walsh will executive produce both a “Hobbit” movie and a sequel, but Jackson was not named as the director…