Variety is reporting that, with Sony seemingly out of the bidding for MGM, Time Warner may step up to the plate and purchase the flailing studio.

So why should Tolkien fans care?

Well, while New Line, which is owned by Time Warner, was responsible for the three phenomenally successful Lord of the Rings films, MGM retains the rights to The Hobbit. If MGM were to fall under the Time Warner banner, New Line and director Peter Jackson would then have the go-ahead for the prequel.

Jackson and Ian McKellan, who portrayed the wizard Gandalf in the trilogy and would supposedly do so again in the prequel, have both publicly expressed interest in pursuing the film. With the rights issue out of the way, there's no reason to believe that Time Warner and New Line wouldn't push ahead with what would undoubtedly be another blockbuster hit.

Here's hoping we'll see Bilbo and company hit theaters before the decade is out.