OOPS! Looks like the Weinstein's won't get any dough from the second and third Hobbit movies.
It's so obvious that Warner Bros. wanted to make three movies out of a slender children's book. This myth Peter Jackson came up with if "we wanted to make two, but we had enough footage to make three" is bullshit.
Still, I'd be interested to read the actual arbitrator's ruling. It seems the Miramax/the Weinsteins made their contract with New Line Cinema too specific, so that it said they would get profits only from "one film". So that when Warners decided to make three, Miramax/the Weinsteins got screwed over.