The Culture Secretary told the Prime Minister it would be “totally wrong” for the Government to “cave in” to News Corp’s opponents and instead allow it to help the UK “lead the way” in the media industry.
The memo was not declared by either Mr Cameron or Mr Hunt when the Culture Secretary took over the brief for handling the BSkyB bid from Vince Cable, meaning both Mr Cameron and Mr Hunt are likely to face serious questions from the Opposition.
Just four days before he wrote the memo, Mr Hunt had spoken to James Murdoch on his mobile phone, having been told by lawyers to cancel a proposed meeting with the News Corp executive.
The memo, dated November 19, 2010, said: “James Murdoch is pretty furious at Vince's referral [of the bid] to Ofcom.
“He doesn’t think he will get a fair hearing from Ofcom. I am privately concerned about this because News Corp are very litigious and we could end up in the wrong place in terms of media policy.
“He thinks what James Murdoch wants to do is to repeat what his father did with the move to Wapping and create the world's first multi-platform media operator, available from paper to web to TV to iPhone to iPad.
“Isn't this what all media companies have to do ultimately? And if so, we must be very careful that any attempt to block it is done on genuine plurality grounds and not as a result of lobbying by competitors.
“The UK has the chance to lead the way ... but if we block it our media sector will suffer for years. In the end I am sure sensible controls with be put into any merger to ensure that there is plurality but I think it would be totally wrong to cave in to the Mark Thompson/Channel 4/Guardian line that this represents a substantial change of control given that we all know Sky is controlled by News Corp now anyway.
“What next? Ofcom will issue their report saying whether it needs to go to the Competition Commission by 31 December. It would be totally wrong for the government to get involved in a competition issue which has to be decided at arm's length. “However I do think you, I, Vince and the DPM should meet to discuss the policy issues that are thrown up as a result.”