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Merrick here...
The Star spoke with BLAIR WITCH PROJECT co-director/co-writer Eduardo Sanchez, who revealed that work is now underway on a third BLAIR WITCH film. Seems the success of PARANORMAL ACTIVITY has helped to revitalize the 'found video" genre.
They'd pick up from where the original left off, pretending Blair Witch 2 never happened. The duo recently went on a drive through their original Blair Witch haunts, about a half hour from Sánchez's Maryland home, looking for inspiration. They've worked up a treatment for a new story, which would involve original cast members Heather Donahue, Joshua Leonard and Michael C. Williams, albeit in smaller roles. "We're at the step where we're about to pitch to Lionsgate, which owns the movie rights now. It's pretty much up to them. They can completely squash it or greenlight it."
...says THIS ARTICLE at The Star. I seem to recall, a long long time ago, hearing that a third film would actually be a flashback/origin story chronicling the tale of the Blair Witch. Anyone else recall that? Seems like they're going to different direction now. Before it hit theaters, I saw the first film in a dark house surrounded by big trees in spooky woods on a windy, moonless night. Scared the piss out of me. I haven't seen it since then...wonder if it holds up?

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