The gaming and media giant, owned by Australia's richest man James Packer, will spin off its television and magazine assets into a new company, PBL Media Ltd, which will be Australia's largest diversified media group, the company said.
The assets include the Nine Network, including its interest in Sky News, plus ACP Magazines, PBL's 50 percent interest in ninemsn with Microsoft, and its 41 percent shareholding in internet site carsales.com.au.
The deal was announced within hours of parliament passing new media ownership laws which are expected to result in a wave of takeovers, mergers and foreign investment in Australia's 12 billion dollar media industry.
The changes allow foreign investors to buy local media companies, and lift limits on how many media outlets a single proprietor can own in one market.
For the first time in two decades, newspaper publishers will be allowed to own a radio or television station in the same city, and vice versa.
Gaming focus
In a statement, Mr Packer said the restructuring would help the company achieve its ambition to expand its international gaming interests.
The company already owns Melbourne's Crown Casino and the Burswood Casino in Perth, and is part of a massive three-casino joint venture project in Macau with Lawrence Ho's Hong Kong-listed Melco International.
PBL last week also joined a consortium bidding $US3.5 billion ($A4.63 billion) for the right to build Singapore's second casino.
"Over the last 12 months we've strongly indicated our desire to invest in new opportunities," said Mr Packer, PBL's executive chairman.
"The restructure will provide the capital and flexibility necessary for the company to achieve its ambition to expand its international gaming interests.
"For PBL it releases cash at a time when there is a land-grab underway for gaming and entertainment assets around the world."
Shares in PBL surged more than seven percent following the announcement.
After coming out of a trading halt shares shot up $1.50 to $21.35.