Last week Peter Jackson floated the idea of turning The Hobbit into a trilogy by splitting The Hobbit: There and Back Again. Heat Vision blog is reporting that the idea has turned into a firm decision for Peter Jackson as he and Warner Bros have begun talks for two months of filming in the Summer of 2013. The new footage would be added to existing using material from The Lord of the Ring Appendices (something the films already do but assume Jackson wants to add even more).

WB is on board with the idea but there are financial hurdles to clear. The cast would have to be rehired, a group that is in a much stronger negotiating position than they were a year ago (can't exactly recast after all). Then there is making sure the rights are cleared for certain aspects of the story, made difficult by the Tolkien estate who loath the movies for not strictly following the books yet torn by the huge financial windfall the movies have brought them.

After that you have the cost of the cost that comes with making the film with additional cast, crew, location shoot, probably rebuilding of sets and so forth. While the cost might land slightly less than the cost of doing an entire new movie, it probably will not come cheap once the dust settles. It is safe to assume that if all works out, the third movie (with new subtitle?) would be released for December 2014.

Jackson, WB In Talks for The Hobbit Trilogy. There are any Jackson, WB In Talks for The Hobbit Trilogy in here.