Just in case you haven't been following the drama that is The Hobbit production over the last few days, here it is in a nutshell. Last week, The Hobbit was finally greenlit -- yes!!! But due to ongoing actor's union disputes and a threat to boycott production, Warner Brothers became concerned about their monster $500 million investment and were exploring options to take filming "offshore." 

Nooooooooo!!! Move Hobbiton and Rivendell?! Blasphemy!

With the threat of The Hobbit moving to another country taking with it $$$ and jobs, on late Wednesday night, over 1500 film technicians marched to Wellington to picket the Actor's Equity union meeting. They chanted "Save The Hobbit" and demanded an end to the contract disputes. Although the actors unions have lifted their ban on The Hobbit, it seems it may be a little too late, reports Deadline Hollywood.

On Thursday morning, Peter Jackson and co-producing partner Fran Walsh released a joint statement: "Next week Warners are coming down to NZ to make arrangements to move the production off-shore. It appears we now cannot make films in our own country - even when substantial financing is available."

Jackson and Walsh called out and condemned the actions of the few in charge of the unions: "The spectacle of NZ Actors’ Equity suddenly canceling their Wellington meeting, because film workers wanted to express to them their concern at losing The Hobbit, exemplifies the pure gutlessness of this small, self-centred group." Ouch, take that, bitches!

They added that the damage is already done: "Unfortunately lifting the blacklist does nothing to help the situation. This will be the start of a domino effect, as word of NZ's unstable employment environment, registers with film investors and studios, world-wide."

"We will continue the fight to keep the film in NZ, but ultimately this decision belongs to Warner Bro’s," added Jackson and Walsh.

In this economy, if New Zealand lose out on production of The Hobbit, not only will their entire film industry suffer, but also tourism and trade jobs associated with a film whose location is so synonymous with the film. The government's tourism tagline at one point was "Visit New Zealand, Home to Middle-earth." Argh. At this point, I don't care where it's filmed, just get it done.

The Hobbit two-film prequel is set to begin shooting in 3D February 2011.

What do you think? Will they stay or  will they go? Will the big guys still move if there's a better deal elsewhere?