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NEW Zealand is to remain the home of The Hobbit after the government struck a $25 million deal with Warner Bros to stop the Hollywood film studio from moving the blockbuster movie production to another country.
A short-lived union boycott prompted Warner Bros representatives to travel to New Zealand last week to review the studio's decision to shoot the two-part adaption of J.R.R. Tolkien's fantasy in New Zealand.
Fearing the loss of the project (worth an estimated $500 million) and damage to the reputation of New Zealand's film industry, Prime Minister John Key stepped in, negotiating a deal to keep the project.
"An agreement has been reached between the New Zealand government and Warner Bros. that will enable the two Hobbit movies to be directed by Sir Peter Jackson to be made in New Zealand," Key said.
