MGM to Produce "The Hobbit"

pawnder writes, "According to two sources, MGM and New Line are partnering to produce 'The Hobbit' as part of MGM's new plans to create blockbuster movies again. From theonering.net: 'Over the next few years, MGM is planning to release half a dozen films, some in the $150 million to $200 million-plus range. Studio is ready to unveil such high-profile projects as "Terminator 4"; one or two installments of "The Hobbit," which Sloan hopes will be directed by Peter Jackson; and a sequel to "The Thomas Crown Affair" with Pierce Brosnan.'" With or without Tom singing, is what I want to know.