MGM CEO Harry Sloan talks 'Hobbit'

Shortly after the announcement, Hollywood Insider spoke with MGM CEO Harry Sloan about the details.

EW: You must be delighted that this project is finally moving forward.HARRY SLOAN:Ecstatic.

Can you talk about how this came together?

Did this just happen overnight or the last few days?Well, you know, nothing happens overnight.

We saw that take place over the last six months.

I wouldnt say it was instant by any means.

Have Peter Jackson and New Line resolved the lawsuit?Yes, they have.

That was part of it, because it wouldnt have been a good atmosphere.

Can you tease us with who might be in line to direct?

Is there any chance that Peter could direct theHobbitsequel?Well, he could direct either of them.

Remember its Peters project, hes overseeing it.

So I dont want to tell you whats legally in the contract….

But we wouldnt do that.

This must be a good time for New Line to land this project, given thatGolden Compasshasnt done well.

Well, Im sure theyre happy now.

Thats how we feel.

So weve got to get this strike settled.

Any word on who would star inThe Hobbit, or any expectations?