Australian media stocks rallied Friday in anticipation of a wave of consolidation in the multibillion dollar sector after the government announced that new ownership laws will come into effect next week.

The major changes to the 20-year-old media laws that start on Wednesday include allowing foreign companies to own Australian media assets and local players to own more than one platform -- newspapers, television and radio -- in each market.

More than 17 billion Australian dollars ($13.7 billion) of deals were announced after the changes were approved by lawmakers in October, as moguls such as James Packer, Rupert Murdoch and Kerry Stokes position themselves for action.

Analysts expect the consolidation frenzy to continue once the changes take effect.

"Next Wednesday marks a landmark event in Australian media history," Goldman Sachs JBWere said in a report.

"Though the actual nature of the media reforms will come as no surprise to the market, the timing of ... and the short notice given ... was unexpected, and could lead to a flurry of activity in the coming few days," the report said.

The market had expected the changes to come into effect later in the year.

Under the new regime, each state capital city market will have a minimum of five media owners and each regional market at least four, with the Australian Competition and Consumer Commission regulating mergers. In each market, one owner can have a maximum of two media platforms.

Current laws prohibit newspaper, radio and television companies in the same city from holding more than 15 percent of each other and foreign companies are barred from controlling more than 15 percent of a television company and more than 25 percent of a newspaper.

Analysts said the changes potentially leaves Fairfax Media Ltd., publisher of newspapers The Sydney Morning Herald, The Age and The Australian Financial Review, open to predators. Fairfax shares rose 5.1 percent during trading Friday.

Other possible takeover targets, radio network Southern Cross Broadcasting Ltd. rose 4 percent, while West Australian Newspapers Holdings Ltd. rose 6.5 percent.

Stocks of potential media buyers also rose.

Stokes' Seven Network Ltd., which will be able to formalize a deal to sell half its media businesses to Kohlberg Kravis Roberts & Co. after the changes, said Friday it will continue to "monitor and pursue" investment opportunities. Seven shares rose 1.4 percent.

Packer's Publishing & Broadcasting Ltd., which last year sold a 50 percent stake in its television and magazine publishing business to private equity group CVC Asia Pacific for A$4.5 billion ($3.6 billion), also rose, by 4.6 percent.