It was a heavy news weekend around the long-awaited production of The Hobbit films.  First, a deal to move the film into production is reportedly very close, according to anonymous sources to Variety and the New York Times.  Although things have been moving forward slowly (see “The Hobbit Inches Towards the Screen”), a final deal has not previously been reported to be close. 

The two films will be produced in 3D, according to the Times.

Meanwhile, in New Zealand, the Prime Minister is offering to have government officials mediate the unionization dispute surrounding the production (see “On Strike Against The Hobbit”), according to Hollywood Reporter.

And Portsmouth Miniatures Studio in Wellington, New Zealand, where Weta Workshop was expected to film the miniatures scenes for The Hobbit, caught on fire Friday and firefighters took three hours to extinguish the blaze, also from Hollywood Reporter.  No specific news about the impact on the films was available.