Guillermo Del Toro spoke at the Los Angeles Film Festival yesterday, answering a battery of questions from fanboys and film freaks. That when he let slide this little tidbit that probably has MGM brass shaking in their boots:

“We believe there is a second movie,” del Toro said during a discussion at the Majestic Crest. “If there isn’t, there will not be. If we find it, we will shoot it, but by God, if we do not find it, we will not shoot it. I am anxious to shoot the book, and I’m willing and able to dedicate myself to shooting the [second film].”

Worst case scenario for the execs is Del Toro and Peter Jackson deciding that there isn’t enough material for a second prequel. There is enough material in all of Tolkien’s Middle Earth lore, but Jackson, Del Toro and Fran Walsh can only pull material from the books they have the rights to, which is far from all the story.

If Jackson and Del Toro jump ship while MGM continues to push for the other planned Hobbit movie, buzz will lower to a murmur and sparks will fly.

Sounds fun!