Per a release from the conference, the new divisions will be announced tonight at 7pm ET.
No word on whether the Big Ten Network will carry the announcement live, but I have to imagine it will. Update: Confirmed - the Big Ten Network will carry the announcement live.
Word leaked about a half hour ago that OSU and Michigan will, in fact, be placed into separate divisions, but will maintain their annual season-ending meeting, setting up the potential for a rematch in the conference championship game whenever the Wolverines feel like playing elite football again. While splitting the two will still rankle some, the conference appears to have heard the backlash over the proposal to move the date of The Game.
Also on the rumor front, the divisions are expected to be:
X Division: Michigan, Michigan State, Nebraska, Iowa, Northwestern and Minnesota
Y Division: Ohio State, Penn State, Illinois, Wisconsin, Indiana and Purdue.
Assuming the above comes to fruition, I guess the only thing left to find out is the name of the divisions.