'Hobbit' pics pegged at $500M (NAUS, NZH, PW)

By Nancy Tartaglione

While the production awaits a green light, one issue may soon be resolved for "The Hobbit." On Monday, New Zealand prime minister John Key said that he hoped to see a labor dispute resolved in the next week or so. Meanwhile, a report in the Australian press has pegged the cost of the two "Hobbit" films at $500 million making it the most expensive production ever (not including a Russian movie of "War and Peace" released in the 60s which, after adjustment for inflation, would today have cost $700 million).

According to Website news.com.au, "The Hobbit" has already racked up legal fees believed to exceed $100 million which would account for some of that $500 million price tag.

According to The New Zealand Herald, Warner sources last week said they were hoping to approve production in the next few days and that development and shooting costs were "close to or around $500 million."

According to PopWatch, the "Hobbit" pics would surpass the current record holders, "The Pirates of the Caribbean" sequels, for the most expensive movie production by about $50 million. "At World's End," cost about $300 million, and was produced jointly with "Dead Man's Chest," for a combined total of around $450 million.

Regarding the dispute over a collective contract for actors in New Zealand who are working on the "Hobbit" films -- and which could result in the films shooting elsewhere if not resolved -- Key on Monday said, "I wouldn't want to predict an outcome there but we are all hopeful that we will get the right result, and that is that those 'Hobbit' movies are made in New Zealand." However, he added that a deal was still not guaranteed. According to the NZH, Key said, "They are still undergoing quite tense negotiations."

Related Links

One budget to ruin them: The Hobbit destined to become most expensive film of all time (NAUS)
'The Hobbit' could be the most expensive movie ever made. Bilbo, is that chinchilla on your feet? (PW)
The Hobbit set to be most expensive movie ever (NZH)
Hobbit dispute nearly over: Key (NZH)