Guillermo Del Toro just announced today that he will not longer be directing The Hobbit. Just a few days ago, during press for Splice, Guillermo said he was still on board for the project. Unfortunately, delays caused by MGM’s troubles led to the departure.

In 2009, MGM sought to restructure its debt in an effort to continue operations.  Investors refused the restructure proposal and decided instead to sell off the company, either in pieces or as a whole.  The company’s intellectual property includes James Bond and part of the two Hobbit movies slated to be released in 2011 and 2012.  Estimates on the value of the company range from 1 to 3.5 billion.