The Hobbit is a vacuum of delays, with one of the major ones being cause by MGM’s inability to green light the film so it can go into production. It seems like everything’s been ready to go for months but their financial troubles have kept them from putting their stamp of approval on the Lord of the Rings prequel. According to several reports, they’ve finally conceded and given the go ahead that we’ve all been waiting for.

According to The Wrap, Peter Jackson’s deal with the studio was finalized this week and he is officially on board to direct. Sources close to the project also confirm that it was in this agreement that they finally gave him the green light status he’s been waiting for. So far Ian McKellen has signed on to return to the series, while Martin Freeman has been rumored to the play the role of the title character.

The Hobbit (Part I) is scheduled to hit theaters on December 19, 2012, and $30 million has already been spent on it. Overall, the production is said to cost around $400 million for both films, which will be shot back to back Lord of the Rings style. Now that the red tape has been cut, do you think they’ll dive right into production? We hope so because they have a lot of catching up to do if they’re going to make the release date.

Do you think The Hobbit will finally go into production?