The music mogul has shocked the world by admitting there are tasks even he can’t manage and decided the 27-year-old would be better off under the other label, home to the likes of Kasabian.
A source told The Sun: “It’s very unusual for Simon to give up control on projects he really believes in. But even he knows where his limits lie.
“He’s hopeful Matt can become the first credible rock act to emerge from The X Factor and realises he needs expertise at Columbia to make that happen.
“Simon has always closely guarded the careers of previous X Factor winners including Leona Lewis and Joe McElderry. They were 100 per cent signed to his label SyCo but Matt will be a 50/50 venture with Columbia.”
Matt’s new label has also looked after Bob Dylan and Bruce Springsteen.
Reports that Simon handed the singer over because he was sick of the sight of him have not been confirmed.