The Hollywood Reporter posted the good news that the Tolkien Estate and New Line Cinema have settled their difference… which of course means that The Hobbit is completely out of danger now and on track to be made without a foreseeable hitch.
At stake was the Tolkien Estate’s contention that they did not receive the required 7.5% of gross receipts from The Lord of the Rings–amounting to $150 million. Here’s what they said upon reaching the settlement:
In a statement on the settlement, Christopher Tolkien says, “The Trustees regret that legal action was necessary, but are glad that this dispute has been settled on satisfactory terms that will allow the Tolkien Trust properly to pursue its charitable objectives. The Trustees acknowledge that New Line may now proceed with its proposed films of ‘The Hobbit.'”
Terms of the settlement were not released.
“We deeply value the contributions of the Tolkien novels to the success of our films and are pleased to have put this litigation behind us,” said Warner Bros.’ president and COO Alan Horn in a statement.
So, did Warner Bros pay the $150 million, or is there some additional agreement on profits for The Hobbit? We’ll have to wait and see…