From the Hollywood Reporter:
CBS Films has picked up the rights and acquired an accompanying pitch by Patrick Melton and Marcus Dunstan, the duo wrote a slew of the Saw horror movies.
Melton and Dunstan will now write the script, which will use the horror folktale anthology as a jumping off point and incorporate some of the book's short stories, while concentrating on a group of kids who band together to save their town from living nightmares.
I would really, really like for it to be A) good and B) scary.
But... I can't say that I'm not extremely worried that it'll be a dud.