'Hobbit,' 'Rings' prequel to go on without Jackson

Peter Jackson says he will not be making a movie based on J.R.R. Tolkien's novel "The Hobbit" or a planned prequel to "The Lord of the Rings."

In a letter posted on Theonering.com., Jackson and partner Fran Walsh said an executive from New Line Cinema had called to tell them the studio was moving ahead with "The Hobbit" without him.

The announcement came amid an ongoing dispute between Wingnut Films and New Line Cinema over the amount Jackson was paid for "The Fellowship of the Ring," including DVD payments.