Wow, surprised by this story. The films made almost 3 billion just in box office, and I am sure tons more in DVD sales. As for the paypal option, they have made enough money off those films to push another one through. Maybe they shouldn't have got so greedy and split the book into 2 different films, pretty sure the The Hobbit was the shortest book in the series. Of course I am a big fan though but I know this will get made, just too much money to be made from them.

These movies will be a goldmine for profits, even if at half of what the first movies made. If MGM cannot ante up i'm sure someone else will gladly step forward to have a chance to share in the wealth.

This is rather discouraging to hear as I was looking very much forward to seeing these, but I have faith that MGM will pull it all together.

And @TheCreeper: It's not greed that motivated del Toro to split the book into two films.; there is just so much stuff in the book that it was almost impossible NOT to split it up. In fact keeping it as one movie would've been a crime against humanity. And if you are such a "big fan," how have you not come to this realization?

Have you seen how they do their book keeping? It's all designed to look profitable to the fans, then when it comes time to pay everyone, they show how they didn't actually make any money.
That's why everyone was suing, to get paid what they were owed.

That's not MGM, that's Warner Brothers who owns New Line. That's why New Line is struggling.

(There are tons of crappy movies made and they take funds from the good ones to "cover" the crappy ones. They actually make movies so they can write off a house used in the movie and the such.)

Are you starting to get the idea?
Basically illegal in the real world, but somehow legal in Hollywood. (Some say the excess money goes to bribe the judges.)

Have you guys actually heard how they're making 2 movies out of it? Apparently, the actual Hobbit book is only going to be covered in the first film, the second film is supposedly devoted to events between the Hobbit and the beginning of Fellowship.

It's sad really. They should go through couples counseling. I would really like to see this movie and would prefer it to be in two pieces. That would insure that more of the literary material would be covered.

Warlock, that's old and now-out-of-date news. Both films are now going to cover the events of The Hobbit.

There is definitely no (significant) original material in films 1 or 2, but there is talk of a THIRD film after, which would be the bridge film.

So we're definitely getting two proper Hobbit films - assuming these financing issues are sorted out - and possibly a third thrown in for good measure.

BOO FREAKING HOO

Hollywood running out of money, so sad. Maybe the government should bail them out.

If MGM goes under, someone else will get the cash. I call shenanigans. The hollywood spin machine has the internet around it's little pinky finger.

if MGM is having money trouble what does this mean for Stargate? doesnt MGM produce/own the rights to it?

First I thought Sony owned at least a piece of MGM and they aren't hurting.

I would not donate, but if they had a "invest in the hobbit button", then I might open my wallet.

Hobbit should have been done as one film. It's the one children's book of the series. I'd rather see Mountains of Madness anyway. As much as I love Tolkein the chance of seeing Lovecraft done right and this story, I can wait on Hobbit.

i wounder if it's just there greed of wanting two films isn't getting the best of them.just make one good hobbit movie.then if it works out.do a bridge movie.i was never a big fan of splitting it up into to two films anyway

jayfyve, although you're right that someone else may get the cash, it's far more complex than that.

There are issues to consider, like, can the new people providing the cash play nice with the rights holders? Can everyone get along? Big companies are like toddlers. They all think they deserve everything, and they have hissy fits when they don't get what they want.

And can money be found in time? Guillermo Del Toro is making approximately one billion films over the next ten years. If he can't make The Hobbit films in the current window of opportunity, he perhaps can't make them at all. While that's not necessarily a bad thing (I'm not a fan), the absence of a major director like GDT may make the moneymen nervous, which has its own set of problems.

Same goes for the actors. They have busy schedules too. What if Sir Ian can't play Gandalf due to a scheduling conflict, because of a delay caused by money issues? That would really hurt the film. Perhaps not financially, but definitely... awesomancially. And what about the other actors?

A surprisingly large number of quite improbable things have to line up to actually get a film made, and many films (that would have been great moneymakers) have lingered in development hell for years (or decades) because those things didn't ever quite line up.

I really hope The Hobbit lines up, and sooner rather than later.

We should all maybe ask our congressmen to propose a bailout for the Hobbit? :) - kh

jbg-
Sony is hurting really bad! They lost a billion last year!
I was working for them and was layed off. They dropped their prices a bit over the holidays and sold out of everything. SURPRISE! We had nothing to sell. They made less because of the economy, but then sold it all. It was a HUGE mess.

Anyway, look up Sony. Just because you don't hear about someone hurting doesn't mean they aren't hurting.

Plus, Sony likes to make a lot of throwaway crap that doesn't make any money, a lot of crappy horror films that no one remembers.

They are losing money left and right.

jbg-
Sony is hurting really bad! They lost a billion last year!
I was working for them and was layed off. They dropped their prices a bit over the holidays and sold out of everything. SURPRISE! We had nothing to sell. They made less because of the economy, but then sold it all. It was a HUGE mess.

Anyway, look up Sony. Just because you don't hear about someone hurting doesn't mean they aren't hurting.

Plus, Sony likes to make a lot of throwaway crap that doesn't make any money, a lot of crappy horror films that no one remembers.

They are losing money left and right.

A PAYPAL button... YES!!! They will raise millions that way! That poster is so f**king awesome and these films are going to be so wicked.. they better get f**king made! Arrrggg!!

MGM has nothing to worry about with the likes of the Fame remake.

FAME! I'm gonna live forever!

It means no SG1 or SGA movies until they get the cash to pay for the productions. Looks like MGM needs to find financing just to pay for continuing operations. That includes movies in current production as well as TV shows, like SGU. If no one gives them loans or refinances their loans to free up cash...

"That's not MGM, that's Warner Brothers who owns New Line. That's why New Line is struggling."

New Line had been a Warner Bros subsidiary since 1996. However, now New Line really no longer exists, as it's just another division of WB.

MGM had NOTHING to do with the Lord of the Rings films. However, they DO have joint rights to finance and distribute The Hobbit with WB/NL, and that is the problem here.

The sad truth about Hollywood is that if MGM can't make the film it will likely shelve the project just to keep from sharing any potential (scratch that - obvious) profits with a second or third party who'd likely jump at the chance to help fund the production...yes HOLLYWOOD = GREED, always has, always will.

I love all this Cassandra bullshit, its all meant to create hype, thats all. Seriously folks, they have money.

This story is a joke. Like there isn't any investors out there that wouldn't throw money in for a share of what is a sure profit.

MAYBE if they were doing only one movie MGM would be able to scrape up the money. IDIOTS! We DON'T NEED The Hobbit split--it's shorter than Return of the King--and we SURE AS HELL don't need a bridging movie between The Hobbitt and The Fellowship of the Ring. Greedy, damned, empty suits.

'It means no SG1 or SGA movies until they get the cash to pay for the productions.'

For every cloud there's a silver lining.