The Hollywood trades are reporting that Guillermo del Toro has signed to direct two Hobbit films for New Line-MGM.  Del Toro, who had been rumored to be talking about this deal for months (see “Del Toro To Direct Hobbit Films”), will move to New Zealand for four years to direct the two pictures back to back.   

The second Hobbit film will be set in the 60-year period between The Hobbit and Fellowship of the Ring.