Dear One Ringers,
As you know, there’s been a lot of speculation about The Hobbit. We are often asked about when or if this film will ever be made. We have always responded that we would be very interested in making the film – if it were offered to us to make.
You may also be aware that Wingnut Films has bought a lawsuit against New Line, which resulted from an audit we undertook on part of the income of The Fellowship of the Ring. Our attitude with the lawsuit has always been that since it’s largely based on differences of opinion about certain accounting practices, we would like an independent body – whether it be a judge, a jury, or a mediator, to look at the issues and make an unbiased ruling. We are happy to accept whatever that ruling is. In our minds, it’s not much more complex than that and that’s exactly why film contracts include right-to-audit clauses.
However, 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. This is simple common sense – you cannot be in a relationship with a film studio, making a complex, expensive movie and dealing with all the pressures and responsibilities that come with the job, while an unresolved lawsuit exists.
To read the rest of the letter in full go to The One Ring.