Watson was speaking during urgent questions in the House of Commons, following Hunt's announcement today that he plans to approve undertakings from Rupert Murdoch's company to spin off Sky News into a separate company in a bid to ensure media plurality.
Criticising the decision Watson asked Hunt why he had taken News Corporation "at its word" despite alleged breaches in previous assurances and in light of the phone hacking scandal.
"No wonder he tried to avoid answering colleagues in the house this morning," Watson added.
"We have to know who will be the new owners of 40 per cent of the country's media estate. I am sure the Secretary of State will get his reward for this decision, but he will pay a very high political price."
Hunt responded to say the comments were "beneath what the honourable gentleman is capable of doing".
"I am perfectly aware that no one is going to trust the motives of politicians. That's why at every stage I have sought independent advice, even in areas I didn't have to, such as seeking Ofcom's advice on whether undertakings were robust. But I chose to do so and I have published their advice.
"I have tried at every stage to strengthen the confidence of the house and the public.
"This is not an issue of trust. Undertakings are legally binding and legally enforceable. One of these undertakings particularly addresses concerns about broadcasting impartiality."
He added that Sky News' editorial will, as a result, be better protected than it is "for any other media organisation in this country".
In reference to the phone hacking investigation he said he agreed that no company should be above the law, but added that neither should any minister.
"I have to consider this on the issue of media plurality ... that's why Murdoch will have less control of Sky News than before because of the undertakings."
He told the house he had not met Murdoch in recent weeks and all other meetings had been minuted and carried out "through official channels".
During the urgent question Hunt was also criticised for the short length of the new consultation, which closes on 8 July.
"I want to remind you that I could have chosen to conclude this issue today but I haven't," he responded.
"This issue has been in the public domain since last summer but I want to make sure the House and the public have every possible opportunity to comment on what is being proposed.
"I have listened to them and made the undertakings more robust and stronger. I am confident that what I am proposing will protect the plurality of the media."
Other MPs accused Hunt of being "wrong morally and politically on this issue" with Labour MP Barry Gardiner referring to Rupert Murdoch as "the Gaddafi of News Corporation".
Hunt insisted he had been "completely transparent about the processes" and the strengthened undertakings offered a "further layer of very important safeguards".
Image by Mike Fleming on Flickr. Some rights reserved.
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