I’m sure you heard about the announcement heard round Middle Earth the world yesterday: Peter Jackson has settled his differences with New Line and has come on board as executive producer of the studio’s two Lord of the Rings prequels. It wasn’t mentioned in the press release, but Jackson has decided not to direct either of the installments in New Line’s adaptation of Tolkien’s The Hobbit, though the news that he’s involved should be enough. Clearly, the studio simply needed to get some good news, any good news, out there — likely more for Time Warner shareholders than Tolkien or Jackson fans.

I wasn’t the only person to immediately assume the settlement between Jackson and New Line had something to do with the latter’s disappointment with the box office of The Golden Compass. Both bloggers and blog comments were quick to claim that, “The Golden Compass’s low box office was the best thing that could have happened for LotR fans” (said “E” on Cinematical) and pat themselves on the back, as if it was all planned: “Well done everyone for not turning up for Compass!!” (from “wildphantom07″ on AICN). The real question, then, is how much more in Jackson’s favor was the settlement? We’ll probably never know, but we can imagine. After a very bad year, New Line was possibly pretty desperate.

Of course, nobody at the studio would ever admit to such a suggestion. Entertainment Weekly has the denial:

New Line is quick to point out that The Hobbit resolution is in no way a reaction to disappointing domestic box office numbers for their most recent release, The Golden Compass, which they had hoped would launch a new franchise. “Absolutely not,” said Lynne. “This has been in the works for a while now. Golden Compass, by the way, overseas, is performing spectacularly. Obviously, we have been disappointed with its performance here, but I think overall it will do quite well.”

EW also talked with MGM CEO Harry Sloan, who was involved as a mediator in the negotiations. He, too, could offer no affirmation to the speculations:

This must be a good time for New Line to land this project, given that Golden Compass hasn’t done well. Did that play any sort of a role in getting this to come through at this point in time?
They can speak for themselves. But from my point of view, I’d say no because I think we were well on our way to having The Hobbit set to be developed and go into production long before Golden Compass opened.

Well, I’m sure they’re happy now. It’s good timing.
Look, any time perhaps the world’s greatest franchise has the opportunity to live on is good timing. That’s how we feel. We’re blessed every time we get another James Bond movie up and running.

Over at MTV.com, there’s more evidence that things were already looking good for The Hobbit long before Compass ever hit theaters:

New Line’s great hope for a new fantasy franchise, had many in Hollywood theorizing that a change in leadership might be due for the studio. Clearly, this announcement will have many at New Line breathing a little easier, as two “Hobbit” films are as close to a sure thing as it gets at the multiplex these days. And indeed, even at the premiere of “The Golden Compass,” New Line Co-CEO Michael Lynne told MTV News that “The Hobbit” was “in the future.”

Either way, of course, The Hobbit announcement is sure to save New Line from both a shakeup and further financial woes. Unless Jackson is unable to deliver fans a pair of films as good as or at least almost as good as what he’d have directed himself, Hobbit 1 and Hobbit 2 will be huge. And isn’t that all that matters? Even if New Line was doing well?