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But make no mistake: In the wake of MGM's unilateral announcement, Jackson has indeed started thinking about what he might do with The Hobbit. He's especially intrigued by the idea of making two films and inventing new material to fill in gaps in the story, since the plot — about how Bilbo Baggins (Ian Holm in the LOTR films) befriends Gandalf (Ian McKellen), falls afoul of the miserable creature Gollum, and comes into possession of that pesky ring—is fairly simplistic compared with LOTR.