The decision by US media giant CBS to buy the Ten Network has sparked a new debate over the Turnbull government's media ownership reforms.
The American broadcaster announced on Monday it had entered into a binding agreement to acquire the business and assets of the troubled Australian media company.
Labor leader Bill Shorten welcomed the news, noting the government's argument for abolishing the so-called two-out-of-three rule was to save Ten.
"Well, CBS has saved Channel Ten so we don't need to tamper with media diversity laws," he told reporters in Melbourne.
Communications Minister Mitch Fifield said that was akin to saying there was no need for umbrellas after a day of no rain.
"The entire media industry says the government's media reform package is needed and Bill Shorten's response is to talk gibberish," he said in a statement.
Senator Fifield, who wouldn't comment on the Ten deal as it was still subject to a number of approvals, accused Labor of pretending Australia's media organisations weren't facing major challenges.
Prime Minister Malcolm Turnbull said the package of changes was not a "Channel Ten amendment agenda".
"This is about ensuring the sustainability of the entire media," the prime minister told reporters in the NSW Snowy Mountains.
The existing provisions were drafted in a pre-internet era and newspaper companies, such as Fairfax Media, and regional broadcasters were screaming out for reforms.
"We need to have media ownership laws that enable the industry to respond competitively to the threat from the internet, from companies like Netflix and Amazon and so forth," he said.
"If Channel Ten is bought by CBS, fine ... but you have got the rest of the industry.'
By opposing the package in the Senate, Labor was guaranteeing foreign companies would advance at the expense of the Australian business.
"It's about time (Mr) Shorten woke up to himself and recognised that the only beneficiaries of his opposition to media law reform are Google, Facebook, Netflix and Amazon," Mr Turnbull said.
"They'd be cheering Bill on, because they'd say - the more divided the Australian media sector is, the easier it is to pick them off."
The government is still in negotiations with the Nick Xenophon Team to secure passage of its reforms through the Senate when parliament resumes next week.
Senator Xenophon told AAP his party is still pushing for measures including tax subsidies for media outlets with an annual turnover of less than $25 million to boost support for public interest journalism.
NXT noted that its preference was for a local purchaser for the Ten Network.
