Peter Jackson has decided to return to Middle Earth for not two, but three, The Hobbitmovies. Why settle for just The Hobbit: An Unexpected Journey and The Hobbit: There and Back Again when you can have a whole prequel trilogy as a companion to The Lord of the Rings? That seems to be Jackson’s thought process as he and production partner Fran Walsh are currently sorting out the logistics of a third film along with screenwriter and producer, Philippa Boyens (The Lord of the Rings trilogy). Jackson had previously teased the idea at Comic-Con, but now the director is reportedly in serious discussions with Warner Bros. to get them on board for the trilogy.
I heard he wanted to do it. Make the third a smooth transition into the LOTRs.