Awhile back, Deadline confirmed that Peter Jackson will be directing the Hobbit. Claiming that Jackson is definitely not confirmed to step in to direct The Hobbit, Knowles quotes a source he refers to as "Derek" -- which, by the way it's quoted, is actually Jackson himself.
"No, nothing has really changed - I've always said that me directing was one option, and so that's not really news. The studio are working out what that deal would look like, because how else do they know if it's a viable option? But it's honestly one of several different options - many irons are in the fire right now. What's of great concern to everyone right now is trying to stay on schedule and not slip back another year, because we will start losing people - and that's increasingly difficult as each day passes. A lot of people - both film makers and studios are working very hard right now, trying to get a positive outcome here."
I hope he directs, this is taking too long.