New Line to film The Hobbit?

Noted in article from some Aussie source
(http://www.news.com.au/common/story_page/0,4057,8040265%255E30977,00.html)

"New Line, which spent $US300million ($415 million) making the films,
is already planning to continue its Rings success with an adaptation
of Tolkien's novel The Hobbit."

Ken Lehner