Entertainment Weekly says The Hobbit could still be made by New Line with Peter Jackson directing. There might even be two films:In the past, Jackson has suggested that he would make two films, with the second one filling in the story arc between the end of The Hobbit and the beginning of Rings. Although Tolkien never wrote a novel bridging the eras, he did scatter clues in shorter pieces and epilogues that could form the basis of a screenplay.
The article describes the dispute between Jackson and New Line which has prevented the film thus far. It is interesting, but certainly not edifying.
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