WB Gets Worldwide Distribution Rights for The Hobbit

MGM and Warner Bros haved reached a deal regarding the theatrical distribution rights for two The Hobbit films. Previousily WB was going to distribute the film in the US while MGM had the international rights but now the WB will distribute the film worldwide and retain US television rights with MGM getting the international television rights for the film. It still isn't clear if MGM is providing their half of the potential $500+ million budgets for the films or if being floated a line by WB but seems like however the finances are being worked out, this deal is part of that. From a fan perspective, this agreement really doesn't mean anything except for what logo you see when the film unreels in theatres.

From the press release:

LOS ANGELES, CA, January 6, 2011- Roger Birnbaum and Gary Barber, MGM Co-Chairman and Chief Executive Officers, Toby Emmerich, President and Chief Operating Officer, New Line Cinema and Alan Horn, President and Chief Operating Officer, Warner Bros. Pictures today announced that MGM and Warner Bros have concluded a deal for Warner Bros. Pictures to handle international theatrical and video distribution responsibilities on MGM's behalf for Peter Jackson's highly anticipated adaptation of J.R.R. Tolkien's "The Hobbit". This arrangement results in Warner Bros. Pictures handling the bulk of worldwide distribution, while MGM will handle international television licensing for the films. MGM and WB will work collaboratively to coordinate marketing and release plans worldwide.