Originally Posted by Elladan and Elrohir

Regardless of whether Shaye's criticism of Jackson is justified, his comments are downright idiotic. He has thrust the dagger into his own heart; now, with the latest comments from Wingnut, PJ has twisted it for him.

We now know for sure that PJ will not be making The Hobbit for New Line Cinema. Probably, this means that New Line is forfeiting their right to make the movie. Well, not forfeiting, but since their films rights expire in a year, since they can't make the film without MGM, and since MGM won't let them make it without PJ, New Line's effectively out of the discussion.

Which means that PJ almost certainly will be making The Hobbit, a little further in the future, though certainly not for New Line.