Warner Bros. has financially saved ‘The Hobbit,’ the two-part prequel to the ‘Lord of the Rings’ trilogy, which has been continuously plagued with labor and money disputes, Reelzchannel.com is reporting. The studio is taking over the reins from MGM, which solved its bankruptcy dispute last month after acquiring $500 million to reorganize the entire company.

The trade happened after the studios were originally planning on splitting the production costs of the two movies equally. But questions arose how MGM would pay its half, as the prequels are expected to cost over $500 million themselves. While Warner Bros. acquired the worldwide theatrical distribution rights with the deal, MG will retain international television rights.

The news comes after it was announced late last year that Sir Ian McKellen and Cate Blanchett will be reprising their roles of wizard Gandalf and Lady Galadriel from the original ‘Lord of the Rings’ trilogy. Orlando Bloom is currently in talks to reprise his role of Legolas in a cameo role. It’s also believed that Andy Serkis and Hugo Weaving will return as Gollum and Elrond, but their participation hasn’t been confirmed yet.

Written by: Karen Benardello