Today, the hopes and prayers of Ringers and baby Orcs everywhere have been answered. Peter Jackson, the Oscar-winning mastermind behind the blockbuster "Lord of the Rings" trilogy, will return to the Shire to produce the Rings prequel "The Hobbit" based on J.R.R. Tolkien's novel.

The end to the acrimony between Jackson and New Line, which began as a dispute over profits from the Rings movies that Jackson claimed the studio owed him, had gotten nasty earlier in the year. Both sides had lobbed personal shots but it looks like common sense and profit potential finally led to a resolution.

News reports indicate MGM helped broker the peace, since MGM will split "The Hobbit" responsibilities with New Line.

"I'm very pleased that we've been able to put our differences behind us, so that we may begin a new chapter with our old friends at New Line," says Jackson about the reunion.

Read more about the Jackson, New Line and MGM partnership here .