Sources further suggest the catalog generates about $900,000 to $1 million in annual revenue. At the lower revenue number, that means the catalog traded on about a 20 times net publisher share multiple. That appears to be the going rate for hot iconic songs nowadays, like "Iris," which is said to generate about half the catalog’s revenue.
The Rzeznik catalog was shopped by Peter Paterno of Kings, Holmes, Paterno & Soriano LLP, sources say, but Paterno did not respond to a request for comment at time of publishing. Rzeznik's representative declined comment.
Round Hill CEO Josh Gruss declined to discuss any details of the deal, but commented on the real estate expression "location, location, location" and said when Round Hill is looking for music asset acquisition it uses the guidance of "quality, quality, quality" in focusing on trophy properties. The Rzeznik catalog exemplifies execution of that philosophy, Gruss said: "We have a lot of comfort for a deal like this because of that indelible nature of the Goo Goo Dolls music."
Besides this deal, Round Hill is in the process of shopping its Round Hill Music Royalty Fund III to institutional investors with the goal of raising $300 million. Sources suggest the firm is about half way to its goal.
In the past, Round Hill has acquired Carlin America, a Big Loud Shirt Industries song catalog and such songwriter publishing catalogs as the North America rights to six classic Beatles songs, while also buying Offspring's master recording catalog, among others.