New Line’s feature adaptation of Stephen King’s “It” has gained a new director — Andy Muschietti, who directed 2013’s “Mama.”

Muschietti is in talks to replace Cary Fukunaga, who dropped out of the project over the Memorial Day weekend over budget issues. Fukunaga, best known for directing the first season of “True Detective,” came on board to the project in 2012.

Seth Grahame-Smith and David Katzenberg are producing through their KatzSmith banner while Dan Lin and Roy Lee are also producing.

King’s 1986 novel was adapted as a TV miniseries in 1991 starring John Ritter and Tim Curry. The story follows a group of outcast children who come together over summer break to take on a monster troubling their town, only to face their own personal demons in the process.

“Mama” starred Jessica Chastain and Nikolaj Coster-Waldau and was a surprise success with worldwide grosses of nearly $150 million on a $15 million budget. Muschietti directed from his own script, based on his 2008 Argentine short film of the same name.

Jon Silk is executive producing “It.” Richard Brener, Walter Hamada and Dave Neustadter are overseeing for New Line; Niija Kuykendall is overseeing for Warner Bros.

Muschietti is repped by WME.

Most novelists are lucky if one of their books catches the eye of Hollywood and makes it into feature film development, but Stephen King’s work has not only inspired countless adaptations, it’s inspired multiple adaptations of the same books. But one of King’s books that’s been ripe for an update is the horror epic It, which was previously made into a miniseries in 1990 and spurred terrible clown-centric nightmares for children everywhere—including yours truly.

A new iteration of It entered development a couple of years ago with True Detective helmer Cary Fukunaga co-writing and directing, but as the project came close to production, the filmmaker departed over creative differences. Now, Mama helmer Andy Muscietti is onboard to direct, and filming is set to get underway later this year.

Steve recently sat down for an exclusive interview with producer Roy Lee at DICE 2016, and Lee confirmed that Fukunaga and Chase Palmer’s original script—which they imbued with many of their personal experiences—has been rewritten:

“It will hopefully be shooting later this year. We just got the California tax credit… Gary Doberman wrote the most recent draft working with Andy Muscetti, so it’s being envisioned as two movies.”

Indeed, the plan was always to make this adaptation two movies, with the first revolving around the characters as children and the second picking up with them as adults. King’s book switches back and forth between the two time periods, and Lee added that once all is said and done, one could conceivably cut these two It movies together to make a more straightforward adaptation of King’s book:

“It is very close to the source material in one way but very different if you look at it as a literary piece of work… We’re taking it and making the movie from the point of view of the kids, and then making another movie from the point of view of the adults, that could potentially then be cut together like the novel. But it’s gonna be a really fun way of making this movie.”

As for the film’s rating, Lee confirms it will be Rated R and adds that while they have a final draft, they’re currently fine-tuning the script to hit their budget target:

“We are very close to turning in the final draft of the script. It’s mainly working on it for budgeting purposes to make it fit within the budget that we have.”

While it remains a bummer that we don’t get to see Cary Fukunaga’s version of this adaptation, it’ll be interesting to see how King’s terrifying novel is translated for modern horror audiences.

Bill Skarsgard has the It factor.

The actor, who is one of the stars of Hemlock Grove, has nabbed the role of Stephen King’s iconic villain Pennywise the Clown in New Line’s adaptation of the author’s landmark novel It.

Skarsgard is in final negotiations to star in the horror pic whose cast will also include St. Vincent actor Jaeden Lieberher, Finn Wolfhard, Jack Dylan Grazer, Wyatt Oleff, Chosen Jacobs and Jeremy Ray Taylor.

Andy Muschietti, the director behind the surprise horror hit Mama, is directing the adaptation, which is being told in two parts. Dan Lin, Roy Lee, Seth Grahame-Smith and David Katzenberg are producing.

The story follows a group of teens called the Losers Club who defeat a creature called It. Years later, the creature returns, and the club, now adults, have to band together again even though they have no memory of the first battle.

New Line’s first movie will tell the kids’ story while the second movie will focus on the adults.

Pennywise is the form the evil entity frequently takes. He is a clown who, when he smiles, is all killer teeth.

The project was originally coming together under the direction of Cary Fukunaga, who left over creative differences, and at the time, Will Poulter (We’re the Millers, The Revenant) was to have played Pennywise. The search for a new director pushed the movie by a year and Poulter was no longer available.

Jon Silk is executive producing It. Richard Brener, Walter Hamada and Dave Neustadter are overseeing the project for New Line.

Skarsgard is the son of actor Stellan Skarsgard and the brother Alexander Skarsgard, the latter who stars in Warner’s Legend of Tarzan this summer. Apart from Hemlock Grove, the actor has appeared in Lionsgate’s Divergent.

He is repped by WME.