KEY POINTS:
New Zealand director Peter Jackson will not be making The Hobbit or a second Lord of the Rings prequel, according a letter posted on LOTR website Theonering.net.
The letter, from Jackson and partner Fran Walsh was posted this morning and states that New Line are actively seeking another director.
A spokesperson from Wingnut Films confirmed to nzherald.co.nz this morning that the letter was genuine.
"Last week, Mark Ordesky called Ken [Kamins, Jackson's manager] and told him that New Line would no longer be requiring our services on The Hobbit and the LOTR 'prequel'. This was a courtesy call to let us know that the studio was now actively looking to hire another filmmaker for both projects," wrote Jackson.
The announcement comes after an ongoing dispute between Jackson's Wingnut Films and New Line, regarding differing accounting practices, revealed during an audit of the income from The Fellowship of the Ring.
While New Line suggested Jackson agree to make The Hobbit in order to settle the lawsuit, the director refused.
"We have always said that we do not want to discuss The Hobbit with New Line until the lawsuit over New Line's accounting practices is resolved," wrote Jackson.
"In our minds this is not the right reason to make a film and if a film of The Hobbit went ahead on this basis, it would be doomed."
Met with Jackson's firm resolve, New Line's Vice-president Mark Ordesky called the director last week and said that New Line had a limited time option on the film rights, something which Jackson says had never been mentioned before.
Clearly disappointed with the news, Jackson wrote: "This outcome is not what we anticipated or wanted, but neither do we see any positive value in bitterness and rancour."
