This article first appeared in The Edge Malaysia Weekly on July 5, 2021 - July 11, 2021

In the last five years, 2018 has been the only year that Media Prima Bhd registered a profit. It came about only from the sale of four properties in Bangsar and Shah Alam, resulting in Media Prima being in the black to the tune of RM58.6 million. The four properties comprise two pieces of freehold land in Bangsar where its Balai Berita headquarters is located, a piece of freehold industrial land with buildings erected in Shah Alam where its printing plant is located, and another piece of freehold industrial land, also in Shah Alam.

Had it not been for the disposal of the assets for a total of RM280 million, Media Prima would have recorded a loss of RM100.7 million.

The media landscape has seen no improvement in recent years as Google and Facebook eat into the advertising pie. Consequently, media giants such as Media Prima have been racking up losses every year despite cost-cutting measures.

One reason for the sale of the properties in 2018 was to settle the group’s debts and ease its cash flow. Following the sale of the properties, Media Prima has been leasing them from PNB Development Sdn Bhd.

In a surprise turn of events, Media Prima is buying the properties in Bangsar back from PNB Development for RM156.4 million.

In addition, the price is higher than the RM118.7 million tag at which they were sold in 2018. The purchase would deplete Media Prima’s current cash position.

The company, which now has Tan Sri Syed Mokhtar Albukhary as a substantial shareholder, sits on RM303.8 million cash and has long- and short-term debts of RM126 million.

Its rationale for the transaction is to expand its studios and ensure the ongoing business will not be disrupted. Also, Media Prima states that the properties are strategically located for news gathering and support long hours of production.

While media companies shed assets and conserve cash to ride out tough times in the industry, Media Prima is doing just the opposite. Its operations, especially print media, are still bleeding. The money that is to be spent for the Bangsar properties could be better used to beef up the core business of news gathering and improving content for broadcast.

So, why the penchant for the land in Bangsar?

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