Apparently according to a press release that's on Theonering.net Del Toro is off the hobbit. I'd love to link the Article but their servers seem to be down, I'd assume due to the huge amount of traffic they are getting hit with.
This, in addition to a story which was on Slashdot.org a few days ago stating that the Hobbit was indefinitely postponed do not fill me with much hope for it getting made.
All of this once more proves, that when it comes to any sort of Intellectual property laws, The Fans are always the ones that lose.
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