When it comes to the companies involved in the Hobbit project, most of the attention lately has been on New Line Cinema. Between the settlement of Peter Jackson’s lawsuit against the studio in December, the lawsuit filed against it by the Tolkien Trust on February 11, and Time Warner’s announcement later that month that it would fold New Line into Warner Bros. But the two Hobbit films are to be a co-production with MGM, owned by Sony.
MGM was not producing films by the time that Sony bought it. Its main value was in its fabulous library of films made since the company’s founding in 1924. Another precious asset it owned was the film-distribution rights to The Hobbit. As New Line and MGM announced on December 18, they will co-finance the two films. New Line was originally supposed to distribute them in North America, and MGM would distribute abroad. Now presumably Warner Bros. will take over New Line’s distribution.
MGM has not sat entirely on the sidelines. Its chairman and CEO, Harry Sloan, was widely credited with having helped break the impasse between New Line and Jackson, leading to the settlement. Since taking over MGM in October of 2005, Sloan has been rebuilding it as a production studio and distributor. The firm will take back the rights to the James Bond and Pink Panther franchises after the current project in each series is released by Sony. It was Sloan who back in September of 2006 broke the news that MGM intended to make “one or two installments” of The Hobbit and expressed the hope that Peter Jackson would direct. That ended the long silence over the project that had been caused by the lawsuit.
Today Variety announced that MGM has named Mary Parent chairperson of its Worldwide Motion Picture Group. Parent was formerly vice chairperson of Worldwide Production at Universal before becoming an independent producer. Now she will be “responsible for oversight of MGM’s worldwide theatrical production, distribution, marketing business affairs.” Sloan refers to the hiring of Parent being key “as we commence production on some of the biggest film franchises in Hollywood”—including, of course, The Hobbit films. It would seem that Sloan is making solid progress in building up the company to cope with such a major undertaking.
By the way, the article refers to Guillermo Del Toro as “currently in talks to direct the two pictures.” The Tolkien Trust lawsuit has presumably put those talks on pause.