Guillermo del Toro says ‘Adios’ to “The Hobbit” “The Hobbit” won’t be happening with Guillermo del Toro. The director of the Oscar-winning film “Pan’s Labyrinth” is departing the project he has spent developing for two years.

However, del Toro’s decision to leave stems from MGM’s inability to give the film a green light as the studio hangs in a limbo state, waiting for a buyer. According to the Hollywood Reporter, del Toro was hoping for a production start this summer.

Del Toro apparently moved his family to New Zealand to shoot the film, which was to be released in two parts, with the first bowing in December 2012.

He mentioned on that he will continue to co-write the franchise’s screenplays with the film’s producers Peter Jackson, Fran Walsh and Phillpa Boyens.

Jackson responded to the bad news in a statement on OneRing: “We understand how the protracted development time on these two films, due to reasons beyond anyone’s control – has compromised his commitment to other long term projects. The bottom line is that Guillermo just didn’t feel he could commit six years to living in New Zealand, exclusively making these films, when his original commitment was for three years.”

“New Line and Warner Bros. will sit down with us this week, to ensure a smooth and uneventful transition, as we secure a new director for ‘The Hobbit.’ We do not anticipate any delay or disruption to ongoing pre-production work,” he said.

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