The Hobbit farce gets even more complicated with word that the rights return to Tolkein Enterprises next year and that Peter Jackson will direct Hobbit through them.

According to Saul Zaentz, the owner of Tolkien Enterprises:

It will definitely be shot by Peter Jackson. The question is only when. He wants to shoot another movie first. Next year the Hobbit-rights will fall back to my company. I suppose that Peter will wait because he knows that he will make the best deal with us. And he is fed up with the studios: to get his profit share on the rings trilogy he had to sue New Line. With us in contrast he knows that he will be paid fairly and artistically supported without reservation.

Does this story from TheOneRing.net mean that the letter Jackson wrote recently was more to delay his part in the film so that the rights fall back to Tolkein Enterprises and Jackson will be asked to direct with a more attractive salary offering? Surely if New Line and MGM race ahead with production they can secure the film, I would have thought that the rights would only return if the production wasn't happening?

Still though, there are the conflicting comments. New Line say no, as you can see from the previous story above, and MGM say a resounding yes to Jackson directing.

Just what is going on here? I think Jackson is in a really strong position right now and whatever happens he'll come out the good guy. If they don't use him and the film goes ahead then he was the guy who started it all and no matter how good the film turns out there will always be a belief that Jackson would have done it better. If he does make it with MGM then he'll be seen to break New Line, and if he makes it with Tolkein Enterprises then he gets his extra cash and will be seen to break both studios. Winner all round.