The following YouTube video confirms that Guillermo Del Toro will be directing ‘The Hobbit’ films. UPDATE An inside source has sent us an update. [Click Here]

See below for the video – The important part starts around :40

UPDATE Please note, in this video, you will see the Director of ‘The Orphanage’, Juan Antonio Bayona is on the left – to his right is the star of the movie, Belen Rueda – and Guillermo Del Toro is standing next to her.

Female Translator: Today it is our pleasure to announce something that everyone was hoping for, Guillermo will direct ‘The Hobbit’

(Clapping)

Female Translator: And he will give a small role to (the Spanish translator)