Official Statements : This Is It - MICHAEL JACKSON PERFORMS IN LONDON FOR THE LAST TIME

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The pop star Michael Jackson announced Thursday his first concert tour in 12 years.

The touring deal with concert promoter AEG Live could be worth as much as $400 million for Mr. Jackson over three and a half years. The first phase of the tour includes 10 concerts at London's O2 arena beginning July 8, but he has the option to extend the run for additional dates at venues spread across three continents.

Depending on the strength of ticket sales for the first 10 shows, Mr. Jackson may add more dates at the O2, with the ultimate goal of exceeding the record-setting 21-night stand by Prince in 2007. Depending on how many dates he adds, Mr. Jackson's take from the London concerts alone could be between $30 million and $50 million, according to people familiar with the matter. Tickets to the London performances are to go on sale, via an online lottery system at MichaelJacksonLive.com, next Wednesday for £50 ($70) to £75 ($105) each.

Mr. Jackson would then have the option to add more dates in Europe, Asia and finally North America. But he is not committed to play any shows beyond the original 10, and would in any event not reach the U.S. before 2011. "He has been the biggest star in the world and it's time for him to get back on the stage," said Randy Phillips, president and chief executive of AEG Live.

Mr. Jackson has borrowed hundreds of millions of dollars against his share of Sony/ATV Music Publishing -- a joint venture with Sony Corp. -- and other assets. Sony/ATV generates an estimated $300 million to $350 million a year in revenue, a small piece of which flows to Mr. Jackson in the form of dividends. In addition, Sony around three years ago arranged for a loan to Mr. Jackson by British banking giant Barclays PLC, backed by his share of the venture. As a result, he sees little direct income from the endeavour. A Sony spokeswoman declined to comment.

But if Mr. Jackson goes through with the full concert-tour plan, he could be in a position to make an offer for Sony's share of Sony/ATV in about a year and a half, according to people close to the matter, under a buy-sell provision in the partnership agreement.

Last year, Mr. Jackson's Neverland Ranch was saved from foreclosure by Los Angeles private-equity group Colony Capital, which bought the note on the property for millions of dollars. Colony now holds an equity stake in Neverland and is deeply involved as a business advisor to Mr. Jackson. A Colony associate, Tohme Tohme, has been serving as Mr. Jackson's manager for the past year and was involved in arranging the AEG deal.

As part of the deal, AEG's corporate parent, Anschutz Corp., agreed to invest in a pet project of Mr. Jackson's, a 3-D feature film based on his song and music video "Thriller."

People close to the singer say that he is eager to return to work. "Between Anschutz and us, he's got plenty of capital," said Tom Barrack, Colony's chief executive. "He's serious, he's focused, he's healthy and he's listening."

To obtain insurance for the tour, AEG arranged for an independent physician to conduct a five-hour physical exam of Mr. Jackson. "He passed with flying colors," said AEG's Mr. Phillips.

"For the first time in his life, Michael Jackson has people around him who believe in him and look after him," said Dr. Tohme. "And are trying to help him and advance his career."

—The Wall Street Journal, page W2-