GABELLI GLOBAL MULTIMEDIA TRUST INC, N-30D, 1996-08-29

GABELLI GLOBAL MULTIMEDIA TRUST INC
N-30D, 1996-08-29

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[DESCRIPTION] Semi Annual Report

[LOGO}

THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.

Our cover icon represents the underpinnings of Gabelli. The Teton mountains in
Wyoming represent what we believe in in America -- that creativity, ingenuity,
hard work and a global uniqueness provide enduring values. They also stand out
in an increasingly complex, interconnected and inter-dependent economic world.

INVESTMENT OBJECTIVE:

The Gabelli Global Multimedia Trust Inc. is a closed-end, non-diversified
management investment company whose primary objective is long-term growth of
capital, with income as a secondary objective.

This report is printed on recycled paper.
<PAGE>

To Our Shareholders, -------------------

For the second quarter of 1996, the Gabelli Global
Multimedia Trust Inc.'s ("Multimedia Trust") net asset value
per share increased 5.1% from $8.17 on March 31, 1996 to
$8.59 on June 30, 1996. This compares to the average 3.8%
increase of the 30 open-end Global Funds tracked by Lipper [PHOTO]
Analytical Services. For the six months ended June 30, 1996,
the net asset value increased 10.0% versus the 9.7% return
of the average Global Fund according to Lipper. For the
twelve months ended June 30, 1996, the Fund achieved an
18.7% return. Since its inception on November 15, 1994, the
Multimedia Trust's net asset value has achieved a 26.5% -------------------
total return after adjusting for the rights offering and all
distributions. This equates to a 15.5% average annual [LOGO]
return. THE GABELLI
GLOBAL
The Multimedia Trust's common shares ended the second MUTIMEDIA
quarter at $7.00 per share on the New York Stock Exchange, TRUST INC.
up 1.8% for the quarter from its close of $6.875 on March
31, 1996. The common shares were down 3.4% since inception
after adjusting for all distributions and the rights
offering.

In the second quarter of 1996, stronger than expected economic growth
reawakened long dormant inflationary fears and a slumping bond market sounded a
cautionary note for stocks. Still, buoyed by favorable flow of funds --
investment in equity mutual funds remained near record levels -- the Dow Jones
Industrial Average and Standard & Poors' 500 forged ahead. Small cap indices
started to feel the heat, however, with the Russell 2000 retreating 4.1% in
June.

WHAT WE DO |
|
We do what is described as bottom up research: we read E | P
annual reports; we visit the competition; we talk to P | M
customers; we go belly to belly with management. We S | V
structure our portfolio by picking stocks. The following |
graphic further illustrates the interplay among the four MANAGEMENT
components of our valuation approach. -------------
CASH FLOW
Our focus is on free cash flow; earnings before ---------------
interest, taxes, depreciation and amortization (EBITDA) RESEARCH
minus the capital expenditures necessaryto grow the business. -----------------
We believe free cash flow is the best barometer of a business' value. Rising
free cash flow often foreshadows net earnings improvement. We also look at
earnings per share (EPS) trends. Unlike Wall Street's ubiquitous earnings
momentum players, we do not try to forecast earnings with accounting precision
and then trade stocks based on quarterly expectations and realities. We simply
try to position ourselves in front of long-term earnings uptrends. In addition,
we analyze on and off-balance sheet assets and liabilities such as plant and
equipment, inventories, receivables, and legal, environmental and health care
issues. We want to know everything and anything that will add to or detract from

<PAGE>

our private market value (PMV) estimates. Finally, we look for a catalyst;
something happening in the company's industry or indigenous to the company
itself that will surface value. In the case of the independent telephone stocks,
the catalyst is a regulatory change. In other instances, it may be a change in
management, sale or spin-off of a division, or the development of a profitable
new business.

Once we identify stocks that qualify as fundamental and conceptual
bargains, we then become patient investors. This has been a proven long-term
method for preserving and enhancing wealth in the U.S. equities market. At the
margin, our new investments are focused on businesses that are well managed and
will benefit from sustainable long-term economic dynamics. These include macro
trends, such as globalization of the market in filmed entertainment and
telecommunications, and micro trends, such as increased focus on productivity
enhancing goods and services.

BARRON'S 75TH SPECIAL ANNIVERSARY ISSUE

BARRON'S asked our Chief Investment Officer, Mario J. Gabelli, to
discuss his investment themes in its 75th Special Anniversary Issue.
While these comments were written in mid-February, we believe they are
still valid today. Discussion of individual companies is not
necessarily reflective of the Fund's entire portfolio.

"The ancient Greek dramatist Euripides said, 'The best of seers is
he who guesses well.' Each year since 1980, BARRON'S has given me the
opportunity to sit down with a distinguished group of good guessers at
the annual Roundtable and divine what the economy, the markets and some
individual stocks would do in the year ahead. Now, in honor of BARRON'S
75th Anniversary, I've been invited to stick my neck out even further
and discuss several investment themes that will theoretically enrich
readers over the next five years. Fair enough.

I will begin with the confession that over the past 20 years, our
annual macroeconomic and market forecasts haven't always been right.
Fortunately for our clients and BARRON'S readers, our investment
methodology is not built upon accurately predicting interest-rate
trends or timing the market, but rather on picking stocks, and many of
our picks have fared quite well.

One reason is that we've had a good batting average identifying
trends -- we call them catalysts -- that have unlocked value in
selected industry groups. A catalyst can be a change in regulatory
standards such as the original cable television deregulation bill of
1984 that led us to lucrative investments in cable stocks. It can be
consolidation within an industry. The scramble for filmed entertainment
assets engendered by expanding distribution systems throughout the
1980's and early 1990's inspired us to take substantial and ultimately
quite profitable positions in Warner Communications, MCA and Paramount
prior to their acquisitions by Time Inc., Matsushita and Viacom,
respectively. Catalysts can also be corporate restructurings. The
recent trend to help realize shareholder value through the sale or
spin-off of businesses has helped us earn good returns from "Humpty
Dumpty" companies, as all the king's horses and all the king's men help
break conglomerates into pieces again. Among them have been TENNECO,
AMERICAN BRANDS, AMERICAN EXPRESS, ITT and, now, AT&T.

Over the next five years, the most powerful trend we see is the
explosive growth of the international marketplace for American goods
and services. This traces its roots to two major catalysts: the
rejuvenation of American industry spawned by a declining cost of
capital and enormous productivity gains, and the victory of global
capitalism symbolized best by the crumbling of the Berlin Wall. Good
old-fashioned Yankee ingenuity has made us more than competitive with
Japan and Germany. We are now in a terrific position to conquer new
international economic frontiers.

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With free-market economies evolving in China and the former Soviet
bloc, and the middle classes rapidly expanding in developing nations in
Latin America and the Pacific Rim, there will be 2.5 billion to three
billion new consumers by the turn of the century. How is this emerging
international middle class going to spend its money? If past is
prologue -- and we can learn something by looking back at the economic
evolution of the great American middle class -- the new international
middle class will upgrade their food consumption habits; if it is made
available, they will buy telephone service; they will spend money on
entertainment and they will travel.

Investors of our persuasion -- stockpickers, if you will -- can't
talk about investment trends without naming some names. Unlike the
Roundtable, where we are constantly prodded both by BARRON'S and our
colleagues to fill in the fundamental blanks on individual stock
selections, I won't be providing hard data on the companies I mention
in this article. Nor will I make predictions about short-term earnings
and cash flow. That said, consistent with our Graham-and-Dodd oriented
value philosophy, we would like to own the businesses named here for
the long term.

IT'S NOT CHICKENFEED: Let's start in, of all places, Iowa. The
American grain farmer is the most productive in the world. Iowa is
agriculturally state-of-the-art. Let me give you a hypothetical
example. There are seven ounces of grain needed to produce one ounce of
meat at market. If chicken or pork consumption in China were to
increase by one ounce per capita, and Iowa were to produce all the
grain used to fatten these Chinese chickens and hogs, on a gross
national product basis, Iowa would be among the richest countries in
the world. This may be perceived as a silly example. But its purpose is
to call attention to the tremendous upside potential for American grain
farmers and vendors to those farmers. Agricultural equipment
manufacturers like JOHN DEERE, companies that move grains to shipping
centers, like ARCHER-DANIELS-MIDLAND, and irrigation-equipment makers
like LINDSAY MANUFACTURING should all be long-term beneficiaries of the
increased role the American farmer will play in feeding the world.

DIALING FOR DOLLARS: Once the new international consumer puts some
more meat on the table, what else would make his or her life better?
Being able to call friends and family on the telephone would be a big
step forward. In fact, you could argue that telecommunications is both
the engine and the caboose in the emergence of the international middle
class. To compete on the global stage, businesses in developing
countries need healthy stock markets to attract global capital. Modern
telecommunications systems are a prerequisite. As efficient
telecommunications systems further enhance economic growth and expand
the middle class, the demand for more universal telephone service
increases. Here, we need to tip our hat to Craig McCaw's evolutionary
theory of time and space, which effectively jump-started the cellular
telephone industry. And when it comes to developing countries, it is
wireless service that will help bring telecommunications services at
reasonable prices.

Arguably, telecommunications is the number one global growth
industry for the next decade or more. Consequently, long-term investors
will not have to be terribly discriminating to earn pretty good returns
in this sector. But rather than take a scattershot approach, investors
might maximize their returns by focusing on those segments of the
industry that will grow the fastest and the dominant players therein.
The big three U.S. long distance companies, AT&T, MCI and SPRINT, are
rapidly developing the strategic alliances with national and local
carriers around the world that should allow them to dominate the
international long-distance market. Telecommunications equipment
manufacturers like LUCENT TECHNOLOGIES, the spin-off from AT&T, and
NORTHERN TELECOM will play a big role in wiring the world. Suppliers of
advanced cable equipment like SCIENTIFIC ATLANTA also have terrific
international growth prospects. On the wireless side, cellular-phone
makers like MOTOROLA and NOKIA should thrive. A special mention should
go to AIRTOUCH, which has done a terrific job winning joint venture
cellular-telephone franchises throughout Europe. Two other cellular
investments worth considering are 360(DEGREE) COMMUNICATIONS, which is
the domestic cellular spin-off from Sprint, and Britain's VODAFONE.

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If you favor a more focused "special situation" approach, the
Canadian telephone giant BCE should benefit when it sells off its
substantial investment in Northern Telecom and as Canadian deregulation
catches up to the rest of the world. On a per-capita basis, the
Vancouver metropolitan area has the highest concentration of expatriate
Chinese in North America. This could prove to be a great "gateway to
China."

GLOBAL EYEBALLS: No American products travel better than filmed
entertainment and pre-recorded music. Several years ago, the investor
relations people at TIME WARNER were kind enough to give us a tape of
Warner cartoon characters providing a global geography lesson dubbed in
a dozen foreign languages.

We've used this tape at our annual client meeting to illustrate the
global reach of the American entertainment industry. There is simply no
place you can go in the world without American film being a staple of
cinematics, cable TV or broadcast entertainment. The same goes for
music. Just look at the convergence of the computer, telephone and
cable television industries in the U.S. Overseas opportunities beckon
as well. In the past five years alone, the number of satellite dishes
in India has gone from 400,000 to 10 million. As the distribution
channels expand worldwide, the value of entertainment will continue to
increase.

With the consolidation we've already experienced in the filmed
entertainment industry, there are fewer ways to participate. Time
Warner is a dominant global company in both filmed entertainment and
pre-recorded music. Assuming the marriage with TURNER BROADCASTING is
consummated, Time could become an international cable TV powerhouse as
well. The stock price has been restrained by concerns about Time's
debt, the unwinding of what has become an acrimonious relationship with
US WEST, and the uncertain prospect for Time Warner's huge cable
television operations. Investors are currently blind to the forest
through the trees on this one. In the long run, however, we are
confident the market will recognize Time Warner's pre-eminent global
position in entertainment software.

Other beneficiaries of this favorable long-term trend for
entertainment software producers and packagers also include Viacom -
the world wants its MTV; SEAGRAM, the new owner of MCA, and LIBERTY
MEDIA, John Malone's combination of TELE-COMMUNICATIONS INC.'S cable
network investments.

UP, UP AND AWAY: Air traffic is tremendously sensitive to increases
in personal income. The new international middle class will be taking
to the friendly skies. They will fly for business, and they will fly
for pleasure. Over the next five years, you could probably make a lot
of money investing in international airline stocks. But it will be less
complicated and perhaps just as profitable investing in BOEING, which
along with Europe's Airbus consortium will build the foreign fleets to
accommodate increasing air traffic abroad.

We are almost right at the bottom of a five-year down cycle in the
aircraft industry. Industry studies indicate that in the next 20 years,
there will be 12,000 new aircraft built to satisfy incremental global
demand and 4,000 to replace aircraft that will be retired because they
are too old or fuel-inefficient or don't meet new noise-control
requirements. That's 16,000 new airplanes to be built over the next two
decades. Boeing, which is a technological leader, will get the lion's
share of orders.

Another option is to invest in vendors to Boeing. There are very few
pure plays in this arena, but companies deriving a material volume of
revenues from commercial aerospace include AMETEK, PRECISION CASTPARTS,
MOOG, CRANE, SPS TECHNOLOGIES, HONEYWELL and CURTISS-WRIGHT. SEQUA
CORP., whose Chromalloy division is a leader in jet engine maintenance
and repair, would be a good "aging of the existing fleet" play.

THE DEAL: Another global dynamic that isn't new, but is far from
finished, is strategic merger-and-acquisition activity. At the 1995
Roundtable, I said there would be a ton of deals done in the year
ahead. It worked out to be $458 billion in deals in the U.S. and $866
billion globally. I don't know that we will see that kind of record
volume this year, but you will see some big numbers. Why? The world is
awash in liquidity, rising equity markets make stocks a more valuable
currency and, most importantly, it is still cheaper to buy businesses
on global stock markets than it is to build them from scratch.

4
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How do you take advantage of this long-term trend? I am going to
unabashedly preach for my own church here. As Benjamin Graham and his
successor at Columbia, Roger Murray, instructed us, and as Warren
Buffett has put so profitably into practice, you approach stocks as if
they were pieces of a business you want to buy at a discount to what
Graham called intrinsic value, others call economic value, and what
years ago was termed "private market value."

How do you go about quantifying value? We believe free cash flow,
defined as earnings before interest, taxes and depreciation (EBITD), or
a slight variation, EBITDA, both minus the capital expenditures
necessary to grow the business, is the best barometer of a company's
value. Most corporate merger-and-acquisition people look at the very
same thing. When the informed industrialist is evaluating a business
for purchase, he or she is not going to put a lot of weight on stated
book value. That's for accountants, not for savvy buyers of businesses.
They probably don't care much about net earnings. Clever corporate
managements can be creative in booking earnings. What the informed
industrialist wants to know is: How much cash is this business throwing
off today and how much is he going to have to invest in this business
to sustain or grow this stream of cash in the future.

There are other factors in determining a stock's private market
value. Cost of capital always affects a company's values. That's why
stocks tend to be valued lower when interest rates rise. Cash flow
growth rates will alter values, too. Just as growth-stock investors
will pay a higher price-to-earnings ratio for higher earnings growth,
private-market-value investors will pay a higher multiple of cash flow
for faster cash-flow growth. Finally, sophisticated business buyers
will look beyond the balance sheet for hidden assets - valuable land on
the books at original cost or an overfunded pension plan - as well as
hidden liabilities, like unfunded health-care responsibilities or
potentially costly environmental problems.

By doing this kind of analysis of income statements and balance
sheets, and checking out all those little footnotes attached, and
keeping an eye on the prices businesses are being bought and sold at
every day out there in the real world, you can quantify the value of a
business or group of businesses. You can usually find fundamental
bargains - stocks selling at substantial discounts to private market
value. Then you have to ask the subjective questions: Who might want to
own this company? Would management be receptive to a takeover proposal?
Are the target company's assets so unique that someone might pay well
above fair value?

If you can come up with some positive answers to questions like
these, you may well have found yourself a terrific takeover candidate.

DON'T EXPECT TOO MUCH: Lastly, some comments on the longer-term
prospects for equities. I'm not talking about what is going to happen
to the market over the next quarter or even the next several years.
However, I do think investors should have some perspective on what they
can expect. The average annualized return on equities over the last 15
years, as measured by the S&P 500, is 14.8%. That's almost 50% above
the historical return on stocks on an annualized basis. When you
compound this out 10 years, the differential is staggering. Will we see
the same kind of returns from stocks over the next 15 years? I wouldn't
bet the ranch on it. Sooner or later, this roaring bull market will
end, either with a substantial correction or a bear market or,
preferably, an extended period of much more modest returns.

How should today's investor prepare for this? I would start by
adjusting expectations. When making financial planning assumptions, use
conservative return figures for equities, and save and invest
accordingly. In other words, if you are putting a given amount of
dollars into equities and assuming that it will compound at 15% a year
over the next 10-20 years, you will likely find your children's college
fund or your retirement nest egg more than a little short.

Secondly, you might want to look at alternative investment
strategies. Market-neutral disciplines like risk arbitrage, which is
capable of delivering low-to-mid-double-digit annualized returns
regardless of the direction of the broad equities market, should be

5
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considered. This will be particularly rewarding if what we have
characterized as the third great wave of mergers continues as long as
we expect it to.

Finally, although one can play many global trends from the relative
comfort of the New York Stock Exchange, investors should
internationalize their portfolios. Twenty-five years ago, U.S. equities
represented 66% of the capitalization of the total global equities
market. Today it is 38%. Twenty years ago, only the most adventurous
Americans would invest in places like Spain or Italy. Today, there are
billions of American dollars in emerging markets in Latin America and
the Pacific Rim. It has always been my inclination to challenge the
conventional wisdom. But I do think there is some legitimacy to the
idea that many foreign economies will grow faster than the U.S., and
that returns from foreign equities markets will trend higher than our
own."

THE PORTFOLIO OVERVIEW HOLDINGS BY GEOGRAPHIC REGION - 6/30/96

GLOBAL ALLOCATION

The chart at the right represents [The following table represents a
the Multimedia Trust's holdings by chart in the printed piece.]
geographic region as of June 30, 1996.
The geographic allocation will change United States 68.2%
based on current global market Europe 10.4%
conditions. Countries and/or regions and South America 7.8%
companies represented in the chart and Canada 6.8%
below may or may not be included in the Asia/Pacific Rim 6.8%
Multimedia Trust's portfolio in the
future.

EQUITY MIX [The following table represents a
chart in the printed piece.]
The Global Multimedia Trust's
investment premise falls within the Copyright/Creativity 56.3%
context of two main investment Distribution 43.7%
universes: 1) companies involved in
creativity, as it relates to the
development of intellectual property
rights (copyrights); and 2) companies
involved in distribution, as it relates
to the delivery of these copyrights.
Additionally, this includes the broad
scope of communications-related services
such as basic voice and data.

The chart above depicts our equity mix of the copyright/creativity and
distribution companies in our portfolio as of June 30, 1996.

LET'S TALK STOCKS

The following are stock specifics on selected holdings of the Multimedia
Trust's investments. Favorable EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization) prospects do not necessarily translate into
higher stock prices, but they do express a positive trend which we believe will
develop over time.
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GRUPO TELEVISA S.A. (TV - $30.75 - NYSE) is a Mexico-based entertainment company
that dominates the Spanish speaking world through its fully integrated mix of
content and distribution. The stock has been hurt in line with the Mexican
market and economy but nevertheless, remains the best vehicle for accessing the
growth of disposable income among the Spanish speaking population on a global
basis. The business mix includes film, music, cable television, and
broadcasting. The stock market does not appear to be giving appropriate
attention to the company's holdings in PanAmSat Corporation (SPOT - $29.00 -
NASDAQ) and Univision.

HOME SHOPPING NETWORK, INC. (HSN - $12.00 - NYSE) is a direct marketer utilizing
television, catalogs, and mail order. Recent growth has been impeded by lawsuits
as well as some temporary merchandising and cost control problems. Now that
Barry Diller has arrived, the Home Shopping Channel promises to be an integral
part of the "Interactive Superhighway". The company will benefit from increased
activity in this area. The new management and improved earnings can be expected
to be reflected in a higher stock price.

PACIFIC TELECOM, INC. is a Vancouver, WA-based telecommunications company, whose
primary business is delivering local exchange services to rural and suburban
markets across the western and mid-western states. Pacific Telecom also has
cellular telephone interests in 29 rural and metropolitan markets representing
about two million POPS. Effective September 27, 1995, Pacific Telecom's majority
shareholder, PacifiCorp., acquired the remaining shares it did not previously
own at a price of $30.00. We believe the intrinsic value of Pacific Telecom to
be in excess of $50.00 and are seeking dissenters rights to capture this value
for our shareholders. We placed PacifiCorp in our Hall of Shame for the way it
froze out minority shareholders.

SEAGRAM COMPANY LTD. (VO - $33.625 - NYSE), with its June 1995 purchase of an
80% interest in MCA from Matsushita Electric Industrial Co. for $5.7 billion,
now operates two global businesses: beverages and entertainment/communications.
Seagram produces and markets distilled spirits, wines, fruit juices and mixers.
Major beverage brands include Chivas Regal, Absolut, Martell, Mumm, Crown Royal,
Seagram's Gin and Tropicana and Dole fruit juices. MCA's film and entertainment
activities feature Universal Studios. MCA also has music, recreation services
and book publishing operations.

TELEFONICA DE ESPANA (TEF - $55.125 - NYSE) is a diversified telecommunications
service provider offering services to more than 15 million lines. The company
also services a fast growing cellular subscriber base which now exceeds 1.2
million subscribers. We consider TEF to be an ideal way to invest in Latin
America, with a diversified portfolio of telecommunications operators in the
region. Its portfolio of publicly traded Latin American companies includes:
Compania de Telefonos de Chile, Telefonica de Argentina S.A. and Compania
Peruana de Telefonos. TEF also holds interests in non-public Latin American
telecom operators in Mexico, Colombia, Puerto Rico, Uruguay and Venezuela. The
company's long-term strategy is to create a Pan-American network, leveraging the
Spanish-speaking world.

MULTIMEDIA TRUST ANNOUNCES SHARE BUYBACK

At a special meeting of the Board of Directors on July 3, 1996, the Board
authorized the repurchase of up to 500,000 shares of the Multimedia Trust's
outstanding shares. The Multimedia Trust may from time to time purchase shares
of its capital stock in the open market when the shares are trading at a
discount of 10% or more from the net asset value of the shares.

MEETING OF SHAREHOLDERS

The annual meeting of shareholders was held on May 13, 1996, whereby
shareholders elected Bill Callaghan and Salvatore J. Zizza as Directors of the
Multimedia Trust. 10,191,987 and 10,212,676 votes were cast for each Director
and 227,382 and 206,693 votes were withheld for each Director, respectively.

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In addition, the shareholders elected Price Waterhouse LLP as certified
public accountants for the Multimedia Trust for the year ending December 31,
1996. 10,257,575 votes were cast in favor of approval of the proposal, 60,494
votes were cast against the proposal and 101,300 votes abstained.

INTERNET

You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Funds, Inc., the
Gabelli Mutual Funds, quarterly reports, closing prices, IRAs, 401(k)s and other
current news. You can also send us e-mail at [email protected].

IN CONCLUSION

At the beginning of 1996, we forecast that higher than expected inflation
and rising long-term interest rates would restrain stock returns. Our economic
forecast has proved remarkably accurate. Thus far, the market has largely
ignored these economic signs and marched steadily forward. Whether it will
continue to do so in the second half is questionable.

As always, we are focusing on the individual stocks in the Multimedia
Trust's portfolio. By concentrating on niche industry groups and individual
companies that can do well independent of prevailing economic and broad market
trends, we believe we are well-positioned to prosper, even in a less generous
market environment. Our investment philosophy is simple and straightforward:
buying good businesses cheap will generate consistently superior returns.

We thank you for your confidence in our investing abilities and wish you a
productive and financially rewarding 1996.

Sincerely,

/s/ Mario J. Gabelli
-------------------------
MARIO J. GABELLI, CFA
President and Chief Investment Officer
August 1, 1996

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TOP TEN HOLDINGS
JUNE 30, 1996
Home Shopping Network, Inc. Pacific Telecom, Inc.
Grupo Televisa S.A. Time Warner Inc.
Telefonica de Espana Seagram Company Ltd.
TCI/Liberty Media Group Centennial Cellular Corp
Telecomunicacoes Brasileiras BC TELECOM Inc
SA (Telebras)

-------------------------------------------------------------------

NOTE: The views expressed in this report reflect those of the portfolio manager,
only through the end of the period of this report as stated on the cover. The
manager's views are subject to change at any time based on market and other
conditions.
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THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS -- JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- -----
COMMON STOCKS -- 83.1%
COPYRIGHT/CREATIVITY COMPANIES -- 46.8%
ADVERTISING -- 0.0%
200 Havas Advertising, S.A..$ ............ $ 19,126 $ 22,526
200 Publicis SA .......................... 13,971 15,691
----------- -----------
33,097 38,217
----------- -----------
BROADCASTING -- 10.1%
35,000 Ackerley Communications, Inc. ........ 385,688 953,750
7,000 BHC Communications, Inc.,
Class A ............................ 544,987 684,250
3,000 British Sky Broadcasting
Group, Sponsored ADR ............... 72,400 121,875
6,625 Can West Global
Communications Corp. ............... 101,199 182,186
2,000 Carlton Communications plc,
Sponsored ADR ...................... 63,625 81,750
1,040 CEP Communications ................... 92,284 87,853
16,758 Chris-Craft Industries, Inc. ......... 560,422 737,352
42,500 Citicasters Inc. ..................... 500,365 1,328,125
1,000 Clear Channel
Communications, Inc.+ .............. 28,244 82,375
500 Emmis Broadcasting
Corporation, Class A ............... 10,489 25,000
200 Europe 1 Communication ............... 44,101 43,305
500 Evergreen Media
Corporation, Class A+ .............. 10,736 21,375
500 EZ Communications, Inc.,
Class A+ ........................... 7,911 11,875
5,000 General Electric Company ............. 260,875 432,500
2,000 Granite Broadcasting
Corporation+ ....................... 22,143 25,875
5,000 Grupo Radio Centro, S.A.
de CV .............................. 42,938 49,375
500 Heftel Broadcasting
Corporation, Class A+ .............. 6,500 14,813
2,000 Heritage Media
Corporation, Class A+ .............. 57,850 79,750
750 Infinity Broadcasting
Corporation, Class A+ .............. 13,895 22,500
500 Jacor Communications, Inc.+ .......... 6,958 15,437
700 LaGardere Groupe ..................... 12,878 18,039
22,000 LIN Television Corporation+ .......... 656,930 792,000
400 Metropole TV M6 S.A.+ ................ 35,208 46,606
4,000 Multi-Market Radio, Inc.,
Class A+ ........................... 38,863 43,750
1,100 Nippon Television
Broadcasting ....................... 323,764 341,241
7,500 NTN Communications Inc.+ ............. 43,500 44,062
5,000 Osborn Communications
Corporation+ ....................... 37,925 55,000
16,500 Paxson Communications
Corporation, Class A+ .............. 246,754 175,312
781 SAGA Communications, Inc.,
Class A+ ........................... 9,712 16,889
2,000 Scandinavian Broadcasting
System S.A.+ ....................... 42,023 49,000
1,000 SFX Broadcasting, Inc.,
Class A+ ........................... 23,020 39,000
1,000 Silver King
Communications, Inc.+ .............. 14,420 30,000
12,500 Sistem Televisyen
Malaysia Berhad .................... 18,259 25,561
12,500 Sistem Televisyen
Malaysia Berhad, Class A+ .......... 18,259 25,561
50,000 Television Broadcasting Ltd.
ORD ................................ 187,673 187,645
2,000 Television Francaise 1 ............... 206,188 228,372
40,000 Tokyo Broadcasting System ............ 655,630 708,029
99,000 United International Holdings,
Inc., Class A+ ..................... 1,424,845 1,361,250
40,000 Westinghouse Electric
Corp. .............................. 599,125 750,000
----------- -----------
7,428,586 9,938,638
----------- -----------
CABLE -- 6.6%
1,000 Audiofina ............................ 54,505 47,844
3,000 BET Holdings, Inc., Class A+ ......... 52,188 79,125
25,000 Flextech plc+ ........................ 163,093 195,814
23,100 Gaylord Entertainment
Company, Class A ................... 514,485 652,575
80,000 Home Shopping Network,
Inc.+ .............................. 659,715 960,000
3,000 International CableTel
Incorporated+ ...................... 62,325 88,500
60,000 International Family Entertainment,
Inc., Class B+ .................... 860,105 1,110,000
75,000 Tele-Communications, Inc. /
Liberty Media Group,
Class A+ ........................... l1,896,038 1,987,500
45,000 Tele-Communications
International, Inc., Class A+ ...... 719,737 793,125
6,400 United Television, Inc. .............. 415,822 627,200
----------- -----------
5,398,013 6,541,683
----------- -----------

See Notes to Financial Statements.

9
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED) -- JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
MARKET
SHARES COST VALUE
------ ---- -----
COMMON STOCKS (CONTINUED)
COPYRIGHT/CREATIVITY COMPANIES (CONTINUED)
ENTERTAINMENT PRODUCTION -- 2.9%
5,000 All American
Communications Inc.+ ............... $ 46,295 $ 50,000
10,000 All American
Communications Inc.,
Class B+ ........................... 105,000 85,000
15,500 Ascent Entertainment
Group Inc.+ ........................ 232,207 391,375
15,000 Canal +, Sponsored ADR ............... 431,000 734,063
4,000 Cinar Films Inc., Class B+ ........... 36,725 87,000
15,000 Cinergi Pictures
Entertainment Inc.+ ................ 73,849 33,750
2,000 DMX Inc.+ ............................ 4,975 2,500
2,360 Fisher Companies Inc. ................ 138,050 206,500
7,000 Grammy Entertainment plc ............. 67,723 97,035
3,500 Granada Group plc .................... 35,566 46,794
10,000 GTECH Holdings
Corporation+ ....................... 169,281 296,250
1,000 Harvey Entertainment
Company+ ........................... 12,857 8,500
9,700 Katz Media Group Inc.+ . ............. 158,473 139,437
1,000 Lancit Media Productions,
Ltd.+ .............................. 13,040 11,500
300 NRJ SA ............................... 22,694 39,615
877 People's Choice TV
Corporation+ ....................... 13,356 16,005
20,000 Savoy Pictures
Entertainment Inc.+ ................ 124,314 107,500
100,000 Shaw Brothers (Hong Kong)
Ltd. ............................... 145,929 116,269
7,500 Spelling Entertainment
Group, Inc.+ ....................... 60,375 57,187
13,000 THORN EMI plc, Sponsored
ADR ................................ 247,687 360,100
1,700 Tring International Group ............ 3,099 765
----------- -----------
2,142,495 2,887,145
----------- -----------
GAMING -- 1.3%
3,000 Bay Meadows Operating
Company ............................ 48,150 51,375
2,500 Churchhill Downs
Incorporated ....................... 102,432 90,000
4,000 Hilton Hotels Corporation ............ 236,987 450,000
8,000 ITT Corporation, New+ ................ 413,550 530,000
50,000 Ladbroke Group plc ................... 128,134 139,590
2,500 Quintel Entertainment Inc.+ .......... 12,500 26,250
----------- -----------
941,753 1,287,215
----------- -----------
GLOBAL MEDIA AND ENTERTAINMENT -- 10.6%
70,000 Grupo Televisa S.A., GDR ............. 1,422,344 2,152,500
25,000 Havas, Sponsored ADR ................. 498,375 518,750
4,000 Metromedia International
Group Inc.+ ........................ 44,000 49,000
21,000 News Corporation Limited,
ADS ................................ 413,278 493,500
1,000 News Corporation Limited,
Sponsored ADR Preference
Shares ............................. 13,846 20,125
2,000 PolyGram NV .......................... 114,825 117,250
52,500 Seagram Company Ltd. ................. 1,775,453 1,765,312
1,000 Sony Corporation, ADR ................ 54,114 66,125
47,500 Time Warner Inc. ..................... 1,940,638 1,864,375
20,000 Turner Broadcasting System,
Inc., Class A ...................... 518,000 540,000
35,000 Viacom Inc., Class A ................. 1,458,313 1,334,375
24,085 Walt Disney Company .................. 1,583,568 1,514,344
----------- -----------
9,836,754 10,435,656
----------- -----------
INFORMATION PUBLISHING -- 1.3%
2,500 Berlitz International Inc.+ .......... 43,500 53,125
15,000 Data Broadcasting
Corporation+ ......................... 71,006 144,375
17,000 Dun & Bradstreet Corp. ............... 996,807 1,062,500
500 Scholastic Corporation+ .............. 30,672 31,000
----------- -----------
1,141,985 1,291,000
----------- -----------
PUBLISHING -- 11.0%
10,500 American Media Inc.,
Class A+ ........................... 86,900 55,125
10,000 Arnoldo Mondadori
Editore SpA ........................ 63,827 75,582
5,700 Belo (A.H.) Corporation .............. 184,812 212,325
2,500 Central Newspapers, Inc.,
Class A ............................ 71,479 93,750
4,000 Dow Jones & Company Inc. ............. 144,950 167,000
700 Filipacchi Medias .................... 87,284 141,373
37,000 Golden Books Family
Entertainment, Inc.+ ............... 386,381 444,000
3,250 Gray Communications
Systems Inc. ....................... 61,600 74,344
2,000 Harcourt General, Inc. ............... 80,725 100,000
30,000 Harte-Hanks
Communications Inc. ................ 632,313 832,500
7,000 Houghton Mifflin Company ............. 312,401 349,125

See Notes to Financial Statements.

10
<PAGE>

DISTRIBUTION COMPANIES -- 36.3%

CABLE -- 3.7%
3,000 Bell Cablemedia plc, ADR+ ............ 51,880 50,250
32,000 Cablevision Systems
Corporation, Class A+ .............. 1,880,587 1,480,000
6,000 Comcast Corporation,
Class A ............................ 115,665 110,250
1,000 Comcast Corporation,
Class A Special .................... 15,612 18,500
3,000 Comcast U.K. Cable Partners
Limited, Class A+ .................. 43,612 38,250
4,000 General Cable Corporation
plc, ADR+ .......................... 58,500 61,500
2,000 NYNEX CableComms Group
plc, ADR+ .......................... 35,027 32,500
2,000 Rogers Communications,
Inc., Class B+ ..................... 20,100 18,500
4,000 Telewest Communications
plc, Sponsored ADR+ ................ 97,757 99,750
85,000 Tele-Communications,
In1, Class A+ ...................... 369,662 1,540,625
5,000 Videotron Groupe ..................... 42,106 47,300
9,000 Videotron Holdings plc,
ADR+ ............................... 137,923 167,625
100 Wireless One Inc.+ ................... 1,329 1,800
----------- -----------
3,869,760 3,666,850
----------- -----------

ENTERTAINMENT DISTRIBUTION -- 2.2%
150,000 Cineplex Odeon
Corporation+ ....................... 206,250 300,000
22,000 GC Companies, Inc.+ .................. 609,162 819,500
2,500 Lodgenet Entertainment
Corporation+ ....................... 22,042 34,375
19,500 Shaw Communications Inc.,
Class B, Conv ...................... 122,708 137,994
45,000 US WEST Media Group+ ................. 798,891 821,250
----------- -----------
1,759,053 2,113,119
----------- -----------

EQUIPMENT -- 1.0%
3,000 General Instrument
Corporation ........................ 79,564 86,625
21,000 Lucent Technologies, Inc. ............ 567,000 795,375

See Notes to Financial Statements.

11
<PAGE>

INTERNATIONAL TELEPHONE-- 11.2%
83,000 BC TELECOM Inc. ...................... 1,491,564 1,615,994
15,000 BCE Inc. ............................. 507,500 592,500
5,000 BHI Corporation ...................... 78,754 73,125
28,000 Cable & Wireless plc,
Sponsored ADR ...................... 564,900 553,000
13,000 Compania de
Telecomunicaciones de Chile
SA, Sponsored ADR .................. 985,772 1,275,625
220,000 CPT Telefonica del Peru,
Class B+ ........................... 453,675 445,934
50 DDI Corp. ............................ 401,727 436,131
6,000 GST Telecommunications,
Inc.+ .............................. 38,425 78,750
20 Japan Telecom Co., Ltd. .............. 393,221 443,431
10 Nippon Telegraph &
Telephone Corp. .................... 81,575 74,088
1,100 PT Indonesia Satellite, ADR .......... 36,493 36,850
1,000 PT Telekomunikasi Indonesia+ ......... 20,185 29,750
1,800 Telecom Argentina Stet-France
Telecom S.A., Sponsored ADR ........ 69,082 84,375
1,000 Telecom Corporation of
New Zealand Ltd., ADR .............. 62,150 66,750
275,000 Telecom Italia SpA ................... 445,468 590,406
28,000 Telecomunicacoes Brasileiras
SA (Telebras), Sponsored
ADR ................................ 922,110 1,949,500
3,000 Telefonica de Argentina S.A.,
Sponsored ADR ...................... 64,387 88,875
37,000 Telefonica de Espana,
Sponsored ADR ...................... 1,577,423 2,039,625
16,000 Telefonos De Mexico SA,
Class L, ADR ....................... 545,567 536,000
----------- -----------
8,739,978 11,010,709
----------- -----------

TELECOMMUNICATIONS-- 4.3%
12,000 AT&T Corp. ........................... 610,925 744,000
2,000 Bruncor Inc. ......................... 34,068 37,766
1,000 Hellenic Telecommunications
Organization S.A. (OTE) ............ 16,553 16,557
3,000 NewTel Enterprises Limited ........... 45,184 48,400
64,200 Pacific Telecom, Inc. (a) ............ 1,912,772 1,926,000
3,000 Philippine Long Distance
Telephone Company+ ................. 184,252 174,375
3,000 Quebec-Telephone ..................... 44,083 47,190
25,000 Sprint Corporation ................... 582,576 1,050,000
6,750 Tel-Save Holdings, Inc.+ ............. 62,645 143,437
----------- -----------
3,493,058 4,187,725
----------- -----------

US REGIONAL OPERATORS-- 2.7%
5,000 Cincinnati Bell Inc. ................. 146,250 260,625
38,000 C-TEC Corporation, Class B+ .......... 1,055,720 1,116,250
20,000 GTE Corporation ...................... 684,562 895,000
1,000 Pacific Telesis Group Inc. ........... 26,800 33,750
800 Teleport Communications
Group Inc., Class A+ ............... 12,800 15,300
12,000 US WEST Communications
Group .............................. 297,179 382,500
----------- -----------
2,223,311 2,703,425
----------- -----------
WIRELESS COMMUNICATIONS -- 11.2%
7,500 AirTouch Communications
Inc.+ .............................. 209,125 211,875
6,000 American Paging Inc.+ ................ 41,863 44,625
4,000 American Portable Telecom,
Inc.+ .............................. 53,090 43,000
100 Asia Satellite
Telecommunications
Holdings Ltd.,
Sponsored ADR+ ..................... 2,583 2,975
6,500 BCE Mobile Communications
Inc.+ .............................. 211,076 211,400
825 CAI Wireless Systems, Inc.+ .......... 3,837 7,631
25,000 Cellular Communications,
Inc., Class A+ ....................... 1,177,919 1,328,125
6,000 Cellular Communications of
Puerto Rico+ ....................... 192,775 195,000
100,000 Centennial Cellular Corp.,
Class A ............................ 1,728,132 1,687,500
18,000 Century Telephone
Enterprises, Inc. .................. 547,650 573,750
37,000 COMSAT Corporation, Series 1 ......... 818,672 962,000
3,000 EchoStar Communications
Corporation, Class A+ .............. 49,120 84,750
15,000 General Motors Corporation,
Class H ............................ 601,063 901,875

See Notes to Financial Statements.

12
<PAGE>

PREFERRED STOCKS -- 0.2%

CABLE -- 0.0%
2,500 Cablevision Systems
Corporation, Series 1,
8.500%, Conv. Pfd. ................. 62,500 65,000
----------- -----------
ENTERTAINMENT -- 0.2%
4,000 AMC Entertainment, Inc.,
$1.75, Conv. Pfd. .................. 105,738 190,500
----------- -----------
TOTAL PREFERRED STOCKS ............................. 168,238 255,500
----------- -----------
COMMON STOCK WARRANTS AND RIGHTS -- 0.0%
640 CEP Communications,
Warrants, expires 12/31/1997+ ....... 1,794 1,864
10,213 Independent Newspapers plc,
Rights, expires 07/12/1996+ ......... 482 1,086
----------- -----------
TOTAL COMMON STOCK WARRANTS
AND RIGHTS ....................................... 2,276 2,950
----------- -----------
PRINCIPAL
AMOUNT CORPORATE BONDS -- 2.2%
- --------- CABLE -- 2.1%
$1,500,000 Home Shopping Network, Inc.,
Conv. Sub. Deb., 5.875%
due 03/01/2006 ...................... 1,500,000 1,755,000
300,000 Tele-Communications
International, Inc., Conv. Sub.
Deb., 4.500% due 02/15/2006 ......... 302,419 267,375
----------- -----------
1,802,419 2,022,375
----------- -----------
ENTERTAINMENT PRODUCTION -- 0.1%
100,000 Viacom Inc., Sub. Deb., 8.000%
due 07/07/2006 ...................... 85,793 92,250
----------- -----------
EQUIPMENT -- 0.0%
22,000 Trans-Lux Corporation, Conv.
Deb., 9.000% due
12/01/2005 .......................... 22,025 22,880
----------- -----------
TOTAL CORPORATE BONDS .............................. 1,910,237 2,137,505
----------- -----------
14,126,000 U.S. TREASURY BILLS -- 14.3%
4.950% to 4.990%++ due
07/05/1996 - 08/15/1996 ............. 14,092,284 14,092,284
----------- -----------
TOTAL INVESTMENTS ........................ 99.8% $84,109,288(b)98,382,512
===========
OTHER ASSETS AND LIABILITIES
(NET) .................................. 0.2 156,963
----- -----------
NET ASSETS ............................... 100.0% $98,539,475
===== ===========
- --------------------
(a)Security fair valued by the Board of Directors.
(b)Aggregate cost for Federal tax purposes was $84,109,288. Net unrealized
appreciation for Federal tax purposes was $14,273,224 (gross unrealized
appreciation was $15,492,597 and gross unrealized depreciation was
$1,219,373).
(c)Security exempt from registration under Rule 144A of the Securities Act of
1933, as amended. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
+ Non-income producing security
++ Represents annualized yield at date of purchase.
ADR-American Depositary Receipt
ADS-American Depositary Share
GDR-Global Depositary Receipt
ORD-Ordinary Share

See Notes to Financial Statements.

13
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
.
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------

ASSETS:
Investments, at value
(Cost $84,109,288)............... $ 98,382,512
Cash................................. 253,338
Unamortized organization costs....... 235,831
Dividends and interest receivable.... 148,954
Prepaid expenses..................... 51,416
------------
Total Assets .................... 99,072,051
------------
LIABILITIES:
Payable for investments purchased.... 257,069
Payable for investment advisory fee.. 80,876
Payable for shareholder services fees 60,000
Accrued expenses and other payables.. 134,631
------------
Total Liabilities ............... 532,576
------------
Net assets applicable to 11,476,548
shares outstanding............... $ 98,539,475
============
NET ASSETS CONSIST OF:
Common stock at par value............ $ 11,477
Additional paid-in capital........... 82,464,679
Accumulated net realized gain on
investments...................... 1,694,781
Undistributed net investment income.. 94,903
Net unrealized appreciation of
investments...................... 14,273,635
------------
Total Net Assets ............... $ 98,539,475
============
Net Asset Value ($98,539,475 (/) 11,476,548
shares outstanding; 200,000,000 shares
authorized of $0.001 par value).... $8.59
=====

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
- --------------------------------------------------------------------------------
INVESTMENT INCOME:
Dividend income (net of foreign
withholding taxes of $37,556)...... $ 525,227
Interest income...................... 483,210
----------
Total Investment Income.......... 1,008,437
----------
EXPENSES:
Investment advisory fee.............. 394,767
Shareholder communications expense .. 193,319
Shareholder services fees............ 179,875
Legal and audit fees................. 54,736
Amortization of organization costs... 35,199
Directors' fees...................... 22,881
Payroll.............................. 18,350
Other................................ 19,567
----------
Total Expenses................... 918,694
----------
NET INVESTMENT INCOME .................. 89,743
----------
NET REALIZED AND UNREALIZED GAIN/
(LOSS) ON INVESTMENTS:
Net realized gain on securities sold. 1,675,885
Net realized gain on futures transactions 44,835
Net realized loss on foreign currency
transactions....................... (1,692)
----------
Net realized gain on investments... 1,719,028
----------
Net unrealized appreciation of securities,
foreign currency and other assets
and liabilities
Beginning of period................ 7,122,822
End of period...................... 14,273,635
----------
Change in net unrealized appreciation
of securities, foreign currency and
other assets and liabilities... 7,150,813
----------
NET REALIZED AND UNREALIZED GAIN ON
INVESTMENTS ....................... 8,869,841
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ................... $8,959,584
==========
<TABLE>
<CAPTION>

STATEMENT OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
6/30/96 (UNAUDITED) 12/31/95
---------------- ----------
<S> <C> <C>
Net investment income...................................................... $ 89,743 $ 920,440
Net realized gain on investments........................................... 1,719,028 1,929,500
Net change in unrealized appreciation of investments....................... 7,150,813 6,924,474
----------- -----------
Net increase in net assets resulting from operations....................... 8,959,584 9,774,414
Distributions to shareholders from:
Net investment income.................................................... -- (906,647)
Net realized gain on investments......................................... -- (1,929,500)
Distributions in excess of net realized gain on investments.............. -- (32,880)
Net increase in net assets from Multimedia Trust share transactions........ -- 18,068,392
----------- -----------

Net increase in net assets................................................. 8,959,584 24,973,779
NET ASSETS:
Beginning of period........................................................ 89,579,891 64,606,112
----------- -----------
End of period (including undistributed net investment
income of $94,903 and $5,160, respectively).............................. $98,539,475 $89,579,891
=========== ===========
</TABLE>
See Notes to Financial Statements.

14
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

1. SIGNIFICANT ACCOUNTING POLICIES.

The Gabelli Global Multimedia Trust Inc. ("Multimedia Trust") is a
closed-end, non-diversified management investment company organized as a
Maryland corporation and registered under the Investment Company Act of 1940, as
amended (the "1940 Act"), whose primary objective is long-term growth of capital
with income as a secondary objective. The Multimedia Trust had no operations
prior to November 15, 1994, other than the sale of 10,000 shares of common stock
for $100,000 to The Gabelli Equity Trust Inc. (the "Equity Trust"). On November
15, 1994, the Equity Trust contributed $64,382,764 in exchange for 8,587,702
shares of the Multimedia Trust and immediately thereafter distributed to its
shareholders all the shares it held of the Multimedia Trust. Investment
operations commenced on November 15, 1994. The preparation of financial
statements in accordance with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported amounts
and disclosures in the financial statements. Actual results could differ from
those estimates. The following is a summary of significant accounting policies
followed by the Multimedia Trust in the preparation of its financial statements.

SECURITY VALUATION. Portfolio securities which are traded on a stock
exchange or NASDAQ National Market System are valued at the last sale price as
of the close of business on the day the securities are being valued, or lacking
any sales, at the mean between closing bid and asked prices. Other
over-the-counter securities are valued at the average of the bid and asked
prices as obtained from one or more dealers that make markets in the securities.
Portfolio securities which are traded both in the over-the-counter market and on
a stock exchange are valued according to the broadest and most representative
market, as determined by Gabelli Funds, Inc. (the "Adviser"). Securities traded
primarily on foreign exchanges are valued at the closing price immediately prior
to the close of the New York Stock Exchange of such securities on their
respective exchanges or markets. Securities and assets for which market
quotations are not readily available are valued at fair market value as
determined in good faith by or under the direction of the Board of Directors of
the Multimedia Trust. Short-term investments that mature in more than 60 days
are valued at the highest bid price obtained from a dealer maintaining an active
market in that security. Short-term investments that mature in 60 days or fewer
are valued at amortized cost, unless the Board of Directors determines that such
valuation does not constitute fair value. Debt instruments having a greater
maturity are valued at the highest bid price obtained from a dealer maintaining
an active market in those securities or on the basis of prices obtained from a
pricing service approved as reliable by the Board of Directors.

FUTURES CONTRACTS. The Multimedia Trust may engage in futures contracts
for the purpose of hedging against changes in the value of its portfolio
securities and in the value of securities it intends to purchase. Such
investments will only be made if they are economically appropriate to the
reduction of risks involved in the management of the Multimedia Trust's
investments. Upon entering into a futures contract, the Multimedia Trust is
required to deposit with the broker an amount of cash or cash equivalents equal
to a certain percentage of the contract amount. This is known as the "initial
margin." Subsequent payments ("variation margin") are made or received by the

15
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

Multimedia Trust each day, depending on the daily fluctuation of the value of
the contract. The daily changes in the contract are recorded as unrealized gains
or losses. The Multimedia Trust recognizes a realized gain or loss when the
contract is closed. The net unrealized appreciation/depreciation is shown in the
financial statements.

There are several risks in connection with the use of futures contracts as
a hedging device. The change in value of futures contracts primarily corresponds
with the value of their underlying instruments, which may not correlate with the
change in value of the hedged investments. In addition, there is the risk the
Multimedia Trust may not be able to enter into a closing transaction because of
an illiquid secondary market.

FOREIGN CURRENCY. The books and records of the Multimedia Trust are
maintained in United States (U.S.) dollars. Foreign currencies, investments and
other assets and liabilities are translated into U.S. dollars at the exchange
rates prevailing at the end of the period, and purchases and sales of investment
securities, income and expenses are translated on the respective dates of such
transactions. Unrealized gains and losses, not relating to securities, which
result from changes in foreign currency exchange rates have been included in
unrealized appreciation/depreciation of foreign currency and other assets and
liabilities. Unrealized gains and losses of securities, which result from
changes in foreign exchange rates as well as changes in market prices of
securities, have been included in unrealized appreciation/depreciation of
investment securities. Net realized foreign currency gains and losses resulting
from changes in exchange rates include foreign currency gains and losses between
trade date and settlement date on investment securities transactions, foreign
currency transactions and the difference between the amounts of interest and
dividends recorded on the books of the Multimedia Trust and the amounts actually
received. The portion of foreign currency gains and losses related to
fluctuation in exchange rates between the initial trade date and subsequent sale
trade date is included in realized gain/(loss) from investment securities sold.

SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted for as of the trade date with realized gain or loss on investments
determined using specific identification as the cost method. Interest income
(including amortization of premium and accretion of discount) is recorded as
earned.

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividend income and
distributions to shareholders are recorded on the ex-dividend date. Income
distributions and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Multimedia Trust,
temporary differences and differing characterization of distributions made by
the Multimedia Trust.

PROVISION FOR INCOME TAXES. The Multimedia Trust has qualified and intends
to continue to qualify as a regulated investment company under Subchapter M of
the Internal Revenue Code of 1986, as amended. As a result, a Federal income tax
provision is not required.

16
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

DEFERRED ORGANIZATION EXPENSES. A total of $350,000 was incurred in
connection with the organization of the Multimedia Trust. These costs have been
deferred and are being amortized on a straight-line basis over a period of 60
months from the date the Multimedia Trust commenced investment operations.

2 AGREEMENTS AND TRANSACTIONS WITH AFFILIATES.

The Multimedia Trust has entered into an investment advisory agreement
(the "Advisory Agreement") with the Adviser which provides that the Multimedia
Trust will pay the Adviser a fee, computed weekly and paid monthly, equal on an
annual basis, to 1.00 percent of the value of the Multimedia Trust's average
weekly net assets. In accordance with the Advisory Agreement, the Adviser
manages the Multimedia Trust's portfolio, makes investment decisions for the
Multimedia Trust, places orders to purchase and sell securities of the
Multimedia Trust and oversees the administration of all aspects of the
Multimedia Trust's business and affairs.

During the six months ended June 30, 1996, Gabelli & Company, Inc.
("Gabelli & Company") and its affiliates received $4,910 in brokerage
commissions as a result of executing agency transactions in portfolio securities
on behalf of the Multimedia Trust.

3. PORTFOLIO SECURITIES.

Cost of purchases and proceeds from sales of securities, other than
short-term securities, aggregated $20,154,139 and $12,244,815, respectively, for
the six months ended June 30, 1996.

4. CAPITAL.

Common stock transactions were as follows:
<TABLE>
<CAPTION>

SIX MONTHS ENDED YEAR ENDED
6/30/96 12/31/95
---------------------- ----------------------
SHARES AMOUNT SHARES AMOUNT
------ ------- ------ -------
<S> <C> <C> <C> <C>
Shares issued via rights offering* -- -- 2,869,137 $18,068,392
====== ======= ========= ===========
</TABLE>

- ---------------
*On August 11, 1995 the Multimedia Trust distributed one transferable Right for
each of the 8,607,411 shares outstanding to shareholders of record on that
date entitling each shareholder to acquire with three Rights one newly issued
share of Common Stock at the issue price of $6.50 per share. Stock issuance
costs, which totalled approximately $581,000, were charged directly against
the proceeds of the offering.

5. INDUSTRY CONCENTRATION.

Because the Multimedia Trust primarily invests in common stock and other
securities of foreign and domestic companies in the telecommunications, media,
publishing and entertainment industries, its portfolio may be subject to greater
risk and market fluctuations than a portfolio of securities representing a broad
range of investments.

17
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS

Per share amounts for a Multimedia Trust share outstanding throughout each
period.
<TABLE>
<CAPTION>
SIX
MONTHS
ENDED DECEMBER 31,
6/30/96 -----------------------
(UNAUDITED) 1995 1994*
------------ ------- -------
<S> <C> <C> <C>
OPERATING PERFORMANCE:
Net asset value, beginning of period. ....................... $ 7.81 $ 7.51 $ 7.50
------- ------- -------
Net investment income ....................................... 0.01 0.08 0.03
Net realized and unrealized gain on investments ............. 0.77 0.98 0.03
------- ------- -------
Total from investment operations ............................ 0.78 1.06 0.06
------- ------- -------
Decrease in net asset value from Multimedia Trust
share transactions ........................................ -- (0.46) --
Offering expenses charged to capital surplus ................ -- (0.05) --
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income ................................... -- (0.08) (0.03)
Net realized gains ...................................... -- (0.17) --
Distributions in excess of net investment income ........ --
and/or net realized gains ............................. -- (0.00)(a) (0.01)
Paid-in capital ......................................... -- -- (0.01)
------- ------- -------
Total distributions ......................................... -- (0.25) (0.05)
------- ------- -------
Net asset value, end of period .............................. $ 8.59 $ 7.81 $ 7.51
======= ======= =======
Market value, end of period ................................. $ 7.000 $ 6.750 $ 7.375
======= ======= =======
Net Asset Value Total Return** .............................. 10.0% 14.1% 0.8%
======= ======= =======
Total Investment Return*** .................................. 3.7% 0.4% (7.9)%
======= ======= =======
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's) ........................ $98,539 $89,580 $64,606
Ratio of net investment income to average net assets .... 0.19%+ 1.24% 3.15%+
Ratio of operating expenses to average net assets ....... 1.95%+ 2.04% 1.74%+
Portfolio turnover rate ..................................... 16.0% 86.0% 0.0%
Average commission rate (per share of security) ............. $0.0364 N/A N/A
</TABLE>

- --------------
* The Fund commenced operations on November 15, 1994.

** Based on net asset value per share, adjusted for reinvestment of
distributions and taxes, including the effect of shares issued pursuant to
rights offering, assuming full subscription by shareholder.

*** Based on market value per share, adjusted for reinvestment of distributions
and taxes, including the effect of shares issued pursuant to rights
offering, assuming full subscription by shareholder.

+ Annualized

(a) Amount represents less than $0.01 per share.

18
<PAGE>

AUTOMATIC DIVIDEND REINVESTMENT
AND VOLUNTARY CASH PURCHASE PLAN

ENROLLMENT IN THE PLAN
It is the policy of The Gabelli Global Multimedia Trust Inc. ("Multimedia
Trust") to automatically reinvest dividends. As a "registered" shareholder you
automatically become a participant in the Multimedia Trust's Automatic Dividend
Reinvestment Plan (the "Plan"). The Plan authorizes the Multimedia Trust to
issue shares to participants upon an income dividend or a capital gains
distribution regardless of whether the shares are trading at a discount or a
premium to net asset value. All distributions to shareholders whose shares are
registered in their own names will be automatically reinvested pursuant to the
Plan in additional shares of the Multimedia Trust. Plan participants may send
their stock certificates to State Street Bank and Trust Company to be held in
their dividend reinvestment account. Registered shareholders wishing to receive
their distribution in cash must submit this request in writing to:

The Gabelli Global Multimedia Trust
c/o State Street Bank and Trust Company
P.O. Box 8200
Boston, MA 02266-8200

Shareholders requesting this cash election must include the shareholder's
name and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan may contact State Street Bank and Trust
Company at 1 (800) 336-6983.

Shareholders wishing to liquidate reinvested shares held at State Street
Bank and Trust Company must do so in writing or by telephone. Please submit your
request to the above mentioned address or telephone number. Include in your
request your name, address and account number. The cost to liquidate shares is
$2.50 per transaction as well as the brokerage commission incurred. Brokerage
charges are expected to be less than the usual brokerage charge for such
transactions.

If your shares are held in the name of a broker, bank or nominee, you
should contact such institution. If such institution is not participating in the
Plan, your account will be credited with a cash dividend. In order to
participate in the Plan through such institution, it may be necessary for you to
have your shares taken out of "street name" and re-registered in your own name.
Once registered in your own name your dividends will be automatically
reinvested. Certain brokers participate in the Plan. Shareholders holding shares
in "street name" at such participating institutions will have dividends
automatically reinvested. Shareholders wishing a cash dividend at such
institution must contact their broker to make this change.

The number of shares of Common Stock distributed to participants in the
Plan in lieu of cash dividends is determined in the following manner. Under the
Plan, whenever the market price of the Multimedia Trust's Common Stock is equal
to or exceeds net asset value at the time shares are valued for purposes of
determining the number of shares equivalent to the cash dividends or capital
gains distribution, participants are issued shares of Common Stock valued at the
greater of (i) the net asset value as most recently determined or (ii) 95% of
the then current market price of the Multimedia Trust's Common Stock. The
valuation date is the dividend or distribution payment date or, if that date is
not a New York Stock Exchange trading day, the next trading day. If the net

19
<PAGE>

asset value of the Common Stock at the time of valuation exceeds the market
price of the Common Stock, participants will receive shares from the Multimedia
Trust valued at market price. If the Multimedia Trust should declare a dividend
or capital gains distribution payable only in cash, State Street will buy Common
Stock in the open market, or on the New York Stock Exchange or elsewhere, for
the participants' accounts, except that State Street will endeavor to terminate
purchases in the open market and cause the Multimedia Trust to issue shares at
net asset value if, following the commencement of such purchases, the market
value of the Common Stock exceeds the then current net asset value.

The automatic reinvestment of dividends and capital gains distributions
will not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for Federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.

The Multimedia Trust reserves the right to amend or terminate the Plan as
applied to any voluntary cash payments made and any dividend or distribution
paid subsequent to written notice of the change sent to the members of the Plan
at least 90 days before the record date for such dividend or distribution. The
Plan also may be amended or terminated by State Street on at least 90 days
written notice to participants in the Plan.

VOLUNTARY CASH PURCHASE PLAN

The Voluntary Cash Purchase Plan is yet another vehicle for our
shareholders to increase their investment in the Multimedia Trust. In order to
participate in the Voluntary Cash Purchase Plan, shareholders must have their
shares registered in their own name and participate in the Dividend Reinvestment
Plan.

Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to State Street Bank and Trust Company for investments
in the Multimedia Trust's shares at the then current market price. Shareholders
may send an amount from $250 to $10,000. State Street Bank and Trust Company
will use these funds to purchase shares in the open market on or about the 15th
of each month. State Street Bank and Trust Company will charge each shareholder
who participates $0.75, plus a pro rata share of the brokerage commissions.
Brokerage charges for such purchases are expected to be less than the usual
brokerage charge for such transactions. It is suggested that any voluntary cash
payments be sent to State Street Bank and Trust Company, P.O. Box 8200, Boston,
MA 02266-8200 such that State Street receives such payments approximately 10
days before the 15th of the month. Funds not received at least five days before
the investment date shall be held for investment in the following month. A
payment may be withdrawn without charge if notice is received by State Street
Bank and Trust Company at least 48 hours before such payment is to be invested.

For more information regarding the Dividend Reinvestment Plan and
Voluntary Cash Purchase Plan, brochures are available by calling (914) 921-5070
or by writing directly to the Multimedia Trust.

20
<PAGE>

DIRECTORS AND OFFICERS

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
One Corporate Center, Rye, NY 10580-1434

DIRECTORS

Mario J. Gabelli, CFA
Chairman

Dr. Thomas E. Bratter
President, John Dewey Academy

Bill Callaghan
President, Bill Callaghan Associates

Felix J. Christiana
Former Senior Vice President
Dollar Dry Dock Savings Bank

James P. Conn
Managing Director/Chief Investment Officer
Financial Security Assurance Holdings Ltd.

Karl Otto Pohl
Former President, Deutsche Bundesbank

Anthony R. Pustorino
Certified Public Accountant
Professor, Pace University

Salvatore J. Zizza
Chairman & Chief Executive Officer
The Lehigh Group, Inc.

OFFICERS

Mario J. Gabelli, CFA
President & Chief Investment Officer

Bruce N. Alpert
Vice President & Treasurer

Douglas Neviera
Assistant Vice President

James E. McKee
Secretary

INVESTMENT ADVISOR

Gabelli Funds, Inc.
One Corporate Center
Rye, New York 10580-1434

CUSTODIAN, TRANSFER AGENT AND REGISTRAR

State Street Bank and Trust Company

COUNSEL

Willkie Farr & Gallagher

STOCK EXCHANGE LISTING

NYSE-Symbol: GGT
Shares Outstanding 11,476,548

The Net Asset Value appears in the Publicly Traded Funds column, under the
heading "General Equity Funds," in Saturday's The New York Times and
"Specialized Equity Funds" in Monday's The Wall Street Journal. It is also
listed in Barron's Mutual Funds/Closed End Funds section under the heading
"Specialized Equity Funds".

The Net Asset Value may be obtained each day by calling (914) 921-5071.

- --------------------------------------------------------------------------------

For general information about the Gabelli Funds, call 1-800-GABELLI
(1-800-422-3554), fax us at 914-921-5118 or, visit Gabelli Funds'
Internet homepage at: http://www.gabelli.com or e-mail us at:
[email protected]

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Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Multimedia Trust may from time to
time purchase shares of its capital stock in the open market when the
Multimedia Trust shares are trading at a discount of 10% or more from the
net asset value of the shares.

- ---------------------------------------------------------------------------