New Line will not work with Peter Jackson
According to his rather embittered comments he's not happy with the man, although he does respect him as a director.
"I do not want to make a movie with somebody who is suing me...It will never happen during my watch...
...He got a quarter of a billion dollars paid to him so far, justifiably, according to contract, completely right, and this guy, who already has received a quarter of a billion dollars, turns around without wanting to have a discussion with us and sues us and refuses to discuss it unless we just give in to his plan. I don't want to work with that guy anymore. Why would I? So the answer is he will never make any movie with New Line Cinema again while I'm still working for the company"...
...Shaye said that many of the Rings trilogy actors "suddenly, because, I'm guessing, of Peter's complaint," have declined to participate in celebrating New Line's 40th anniversary. "I'm incredibly offended," he said. "I don't care about Peter Jackson anymore. He wants to have another $100 million or $50 million, whatever he's suing us for. He doesn't want to sit down and talk about it. He thinks that we owe him something after we've paid him over a quarter of a billion dollars. ... Cheers, Peter."
Those harsh and pretty final comments come from OneRing.net through SciFi Wire.
I think it's fair to say we won't see Jackson doing the Hobbit with New Line in the near future. Something is going to have to change for that to happen. We're either going to see a new director, the rights go to a different company, a drop of the law suit, or a change of the heads of the company.