Director Peter Jackson & Warner Bros in Talks to Split THE HOBBIT into Trilogy

Director Peter Jackson upcoming fantasy adaptation is scheduled for theatrical release on December 14, 2012 and stars Martin Freeman as Bilbo Baggins, Ian McKellen as Gandalf, and Andy Serkis as Gollum.

The Hobbit follows the journey of title character Bilbo Baggins, who is swept into an epic quest to reclaim the lost Dwarf Kingdom of Erebor, which was long ago conquered by the dragon Smaug. Approached out of the blue by the wizard Gandalf the Grey, Bilbo finds himself joining a company of thirteen dwarves led by the legendary warrior, Thorin Oakensheild. Their journey will take them into the Wild; through treacherous lands swarming with Goblins and Orcs, deadly Wargs and Giant Spiders, Shapeshifters and Sorcerers. Although their goal lies to the East and the wastelands of the Lonely Mountain first they must escape the goblin tunnels, where Bilbo meets the creature that will change his life forever … Gollum.

Here, alone with Gollum, on the shores of an underground lake, the unassuming Bilbo Baggins not only discovers depths of guile and courage that surprise even him, he also gains possession of Gollum’s “precious” ring that holds unexpected and useful qualities … A simple, gold ring that is tied to the fate of all Middle-earth in ways Bilbo cannot begin to know.

According to The Hollywood Reporter, director Peter Jackson and Warner Bros are coming close to an agreement that will turn the two-picture Hobbit property into a trilogy. Jackson teased this idea with fans at last week's Comic-Con panel for the film, and now both he and the studio are attempting to iron out financial plans to make it a reality.

A source close to the production offered the following comments about the deal: “If we’re going to do it, we have to make a decision soon. It’s strongly driven by the filmmakers’ desire to tell more of the story. It’s about taking the chance to tell more of the incredible tale with the cast we have assembled."