Wow - The Hobbit - Could it be true?

Here is the most amazing Christmas present for all LOTR fans (Thanks to Comingsoon.net for breaking the news - you can finish the story by clicking above). I do hope it is true and not a hoax:

Peter Jackson to Produce The Hobbit and Sequel!
Source: New Line Cinema, MGM December 18, 2007

Academy Award-winning filmmaker Peter Jackson; Harry Sloan, Chairman and CEO, Metro-Goldwyn-Mayer Studios Inc. (MGM); Bob Shaye and Michael Lynne, Co-Chairmen and Co-CEOs of New Line Cinema have jointly announced today that they have entered into the following series of agreements:

* MGM and New Line will co-finance and co-distribute two films, The Hobbit and a sequel to The Hobbit. New Line will distribute in North America and MGM will distribute internationally.

* Peter Jackson and Fran Walsh will serve as Executive Producers of two films based on The Hobbit. New Line will manage the production of the films, which will be shot simultaneously.

* Peter Jackson and New Line have settled all litigation relating to the "Lord of the Rings" (LOTR) Trilogy.

The two "Hobbit" films – The Hobbit and its sequel – are scheduled to be shot simultaneously, with pre-production beginning as soon as possible. Principal photography is tentatively set for a 2009 start, with the intention of The Hobbit release slated for 2010 and its sequel the following year, in 2011.

I guess having a $250 million dollar movie bomb (The Golden Compass) made them desperate to settle their disputes and make this movie.