There is a video on the site as well with a lot more about the deal.October 2010 Last updated at 10:30 ET Help
Two movies based on The Hobbit will be filmed in New Zealand as planned, the country's prime minister has confirmed.
The announcement follows two days of talks with Hollywood executives over whether the Lord of the Rings prequels should be shot in the country.
Warner Bros and New Line had considered taking the production elsewhere after acting unions threatened to boycott the films in a row over wages.
David Silitto reports.
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Hobbit to be made in New Zealand
EDIT: Something else that has been on my mind for a while, while I know Peter jackson is an amazing director and did wonders with LOTR; I ope he is able to stay true to the spirit of "The Hobbit". One has to remember that The Hobbit started its life as a children's story. More specifically it was a story that Tolkien told his kinds at night before bed, and then went back later and wrote it down and cleaned it up as a book. While the book does have its gritty and more dangerous moments, I hope that they are able to keep its overall tone light hearted and not head down into GRIMDARK as hollywood has been doing more and more.
For those that grew up watching the animated movie as kids, I still think that sets a perfect balance of adventure mixed with over all fun and good natured adventure.