In the Third Age , the Ring was found by the Stoor hobbit DÃ agol , who was killed by his friend SmÃ agol over the Ring . SmÃ agol went to live under the Misty Mountains , where he kept the Ring for five hundred years , and he became known by the name Gollum . Over two thousand years later , the Ring comes into the hands of the hobbit DÃ agol , who is then strangled to death by his friend SmÃ agol , who takes the ring , is banished from his community and hides under the mountains , where the Ring transforms him over the course of hundreds of years into a twisted , corrupted creature called Gollum .