The Coalition has agreed to a sixty-million-dollar fund to help smaller operators and an investigation into the influence of global giants Google and Facebook.
Critics say the loosening of ownership limits will only lead to less diversity in the industry.
Debate on the Government's media law reforms went on long into the night.
And with their future hanging on his team's three crucial votes, Senator Nick Xenophon was all but over the line.
"It is fair to say this has been the most difficult and most protracted and most robust set of negotiations I have engaged with in the 20 years of being in parliament, federal and state. And I beleive the outcome reached is a good outcome for diversity of journalism."
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Tasmanian Senator Jacqui Lambie was particularly robust in her opposition to the deal.
She launched an extraordinary attack on the coalition for targeting the ABC and SBS in its reforms.
"You are a disgusting bunch of individuals at times. You have no moral values and to go after the public broadcaster is an absolute disgrace. This is crap. This is the worst lot of crap I have seen."
The government gained the support of Nick Xenophon's team by agreeing to a $60 million package for regional and small publishers, jobs and innovation.
Senator Xenophon also revealed the government had agreed to investigate the role of international giants Google and Facebook on the media landscape.
"When you consider that Google and Facebook are hoovering (sucking) away over four billion dollars in advertising revenue in this country every year and some say it could be upward of 5 to 6 billion dollars, of course that will have a profound impact."
The key changes will be the abolition of the two-out-of-three ownership rule which limits the number of outlets that can be owned in the one market.
The 75 per cent audience reach limit rule will also go.
Greens Leader Richard Di Natale warned the Senate that would only limit the number of media players.
"We have to ensure whatever we do that Australians right around the country have access to a diverse range of voices. That is so critical in any democracy."
But Communications Minister Senator Mitch Fifeld says existing laws are out-dated and stifling investment in the media.
"What the package before the Senate does is provide a shot in the arm (boost) to Australian media organisations. It provides them with a fighting chance. On this side of the chamber we are for strong Australian media organisations. Those opposite talk about it but when it comes to it in the House of Representatives they vote against each and every measure that would support that."
The government had already won the support of One Nation senators for the changes with a side deal to impose new requirements on the ABC and SBS.
Both will have to disclose salaries for staff earning more than $200,000, with legislation requiring ABC news to be fair and balanced.
Labor Senator Sam Dastyari didn't hold back in his assessment of the deal-making between the coalition and minor parties.
"This is an eleventh-hour deal, a dirty deal that's going to hurt public broadcasting in this country. I am not opposed to a deal but make it a good one! Make it a good one! At least get something out of it. How cheap do you have to go on this?"
Whatever the view of the deal, it's likely to trigger a big shake-up of media ownership in the country.
