Peter Jackson will not be directing the film adaptation of The Hobbit. Here is PJ’s letter to the Ringers.
The short explanation is that New Line Cinema is run by money-grubbing Uruk-hai.
PJ made a magnificent screen adaptation of The Lord Of The Rings. He got Tolkien right. His movie trilogy won a truckload of Oscars and earned US$2.9 Billion. He IS a Hobbit. For crying out loud, pay him what you owe him so he can get to work on the damn movie.