King Kong $32m over budget

Peter Jackson's new film King Kong has gone $32m (€26.4m) over budget but apparently the studio remains happy.

It's been reported that the film - due for release at the end of the year - is more than three hours long and has cost $207m (€170.8m). It is unclear who will foot the extra costs, with Universal and Peter Jackson both said to be happy to cover the bigger budget for the re-make.

Jackson was given complete creative control over the film, following his enormous success as director of The Lord of the Rings trilogy, which broke box office records and swept the board at the Oscars for the final film.

King Kong retells the beauty-and-the-beast tale first released in 1933. The new film stars Naomi Watts, Adrien Brody and Jack Black.