GABELLI GLOBAL MULTIMEDIA TRUST INC, N-30D, 2000-03-07

GABELLI GLOBAL MULTIMEDIA TRUST INC
N-30D, 2000-03-07

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[LOGO]
THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.

Annual Report
December 31, 1999
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[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 interdependent economic world.

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[GRAPHIC OMITTED--5 STARS]
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Morningstar Rated(TM) Gabelli Global
Multimedia Trust Inc. 5 stars overall
and for the three- and five-year period ended
12/31/99 among 56 domestic equity funds.
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#1 Global Fund!
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Lipper Inc. ranked Gabelli Global
Multimedia Trust Inc. #1 for the one,
three and five-year periods ended 12/31/99
among 16, 16 and 15 closed-end sector
equity funds, respectively.
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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. The Fund seeks opportunities for
long-term growth within the context of two main investment universes: companies
involved in creativity, as it relates to the development of intellectual
property rights (copyrights); and companies involved in distribution, as it
relates to the delivery of these copyrights. Additionally, the Fund will invest
in companies participating in emerging technological advances in interactive
services and products.

This report is printed on recycled paper.
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To Our Shareholders,

Multimedia stocks excelled in 1999. Virtually all of the sub-sectors of
this broadly defined group--telecommunications, cable television, cable
networks, broadcasting, publishing, and entertainment software--performed
exceptionally well. This was a global phenomenon, with portfolio holdings from
almost every region and nation contributing to the Fund's returns.

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[LOGO]
THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.

Investment Performance

For the fourth quarter ended December 31, 1999, The Gabelli Global
Multimedia Trust Inc.'s ("Multimedia Trust") net asset value (NAV) per share
increased 38.66% to $19.90, after adjusting for the $3.12 per share distribution
paid on December 27, 1999. This compares to the average 23.70% increase of the
268 Global Funds tracked by Lipper Inc. over this period. The Lipper average is
an unmanaged indicator of investment performance. For the twelve months ended
December 31, 1999, the Multimedia Trust appreciated 96.58% after adjusting for
the $3.62 per share in distributions paid during this period. This compares to
the average 35.97% increase of the Lipper Inc. Global Fund Average over the same
period.

The three-and five-year average annual returns of the Multimedia Trust
were 52.04% and 34.37%, respectively. Since its inception on November 15, 1994,
the Multimedia Trust's net asset value has achieved a 341.52% total return after
adjusting for the rights offering and all distributions. This equates to a
33.56% average annual return.

The Multimedia Trust's common shares ended the fourth quarter at $18.75
per share on the New York Stock Exchange, up 50.92% for the quarter and an
increase of 106.60% for the twelve-month period ending December 31, 1999. The
common shares have increased 290.25% since inception after adjusting for all
distributions and the rights offering.

What We Do

The success of momentum investing in recent years and investors' desire
for instant gratification have combined to make value investing appear dull. At
the risk of being dull, we will once again describe the "boring" value approach
that has seen us through both good and bad markets over the last 5 years at The
Gabelli Global Multimedia Trust and for over 23 years at Gabelli Asset
Management Company. In past reports, we have tried to articulate our investment
philosophy and methodology. The following graphic further illustrates the
interplay among the four components of our valuation approach.

[GRAPHIC OMITTED]

Our focus is on free cash flow: earnings before interest, taxes,
depreciation and amortization (EBITDA) minus the capital expenditures necessary
to 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 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 our private market value (PMV)
<PAGE>

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 the agricultural equipment business, it is the increasing world-wide demand
for American food and feed crops. 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 the globalization of the market in filmed entertainment and
telecommunications, and micro trends, such as an increased focus on productivity
enhancing goods and services.

THE PORTFOLIO OVERVIEW

Global Allocation

The chart at the right represents the Multimedia Trust's holdings by
geographic region as of December 31, 1999. The geographic allocation will change
based on current global market conditions. Countries and/or regions and
companies represented in the chart and below may or may not be included in the
Multimedia Trust's portfolio in the future.

HOLDINGS BY GEOGRAPHIC REGION - 12/31/99

[The following table was depicted as a pie chart in the printed material.]

United States 72.1%
Europe 10.6%
Asia/Pacific Rim 7.8%
Canada 6.5%
Latin America 3.0%

Equity Mix

The Multimedia Trust's investment premise falls within the context of two
main investment universes: a) companies involved in creativity, as it relates to
the development of intellectual property rights (copyrights); and b) 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 at the right depicts our equity mix of the copyright/creativity
and distribution companies in our portfolio as of December 31, 1999.

[The following table was depicted as a pie chart in the printed material.]

Distribution 62.6%
Copyright/Creativity 37.4%

Commentary

What a Year

In 1999, multimedia stocks skyrocketed. Every industry group sector in our
portfolio performed well. The top of our performance list featured a wireless
communications company (Omnipoint), a Japanese telecommunications operator
(Japan Telecom), an old line publisher with a new wrinkle (TV Guide), a Canadian
multimedia group (Rogers), a cable network programmer (AT&T's Liberty Media
Group), a global consumer electronics giant (Sony), and a Mexican broadcaster
(Grupo Televisa). In short, it was a truly international menu of companies from
every sector of the multimedia industry. We did a solid job picking stocks.
However, we must also credit widespread investor recognition of the exceptional
prospects for multimedia businesses worldwide for our success.

2
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What's Next

The year 1999 will be a tough act to follow. Although we are mindful of
rather rich valuations in some of the sectors of the broadly defined multimedia
industry and concerned that the U.S. equities market may be vulnerable, we
believe that multimedia remains an exciting industry with exceptional long term
secular growth prospects. The major catalysts for this growth are the
proliferation of free market economies, the deregulation of major industries,
and the advances of commerce through greater interaction among societies. We are
entering a period in which technological innovations, global deregulation, and
global consolidation will dramatically alter the multimedia industry landscape.
There will be winners and losers, and it is our job to determine which companies
will lead and which will fall behind. We believe we are up to the task.

Deal Activity Surfaces Value

A component of our investment methodology is to identify industry and
sector trends and themes ahead of the curve and position ourselves to benefit
from these developments. Industry consolidation is one such trend. As we have
discussed in previous letters, the continued high level of activity in mergers
and acquisitions is providing a tailwind to the excellent performance of the
Multimedia Trust. The accompanying table illustrates how deal activity surfaced
value in a small sample of the portfolio holdings.

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1999 Completed Deals

<TABLE>
<CAPTION>
Number Average Cost Closing
Fund Holding of Shares (a) Per Share (b) Price (c) Closing Date %Return (d)
- ------------ ------------- ------------- --------- ------------ -----------

<S> <C> <C> <C> <C> <C>
King World Productions Inc. 33,000 $28.00 $42.25 11/16/99 50.92%
Nielsen Media Research 200,000 $37.00 $37.75 10/25/99 2.03
Frontier Corp. 10,000 $17.90 $53.63 09/29/99 199.58
People's Choice TV Corp. 14,877 $1.63 $9.94 09/29/99 507.90
COMSAT Corp. 40,000 $20.23 $45.50 09/18/99 124.94
Cellular Communications of Puerto Rico Inc. 10,000 $14.90 $29.50 08/25/99 97.94
Airtouch Communications Inc. 15,000 $29.27 $107.13 06/30/99 266.00
Spelling Entertainment Group Inc. 300,000 $9.26 $9.75 06/18/99 5.27
Bruncor Inc. 4,000 $8.52 $15.62 06/01/99 83.34
Newtel Enterprises Ltd. 3,000 $15.06 $23.59 06/01/99 56.64
Europe One Communications 200 $220.50 $281.92 05/31/99 27.85
Jacor Communications Inc. 500 $13.92 $80.25 05/05/99 476.72
Vanguard Cellular Systems Inc. 40,000 $21.98 $23.00 05/04/99 4.64
NTL Inc. 4,498 $25.78 $53.44 04/01/99 107.33
Pulitzer Publishing Co. 26,000 $30.94 $81.19 03/19/99 162.40
Netscape Communications Corp. 200 $14.00 $94.06 03/17/99 571.86
Tele-Communications Inc., Cl. A 51,000 $14.83 $67.88 03/10/99 357.72
TCI/Liberty Media Group 184,000 $12.86 $54.44 03/10/99 323.33
TCI Ventures Group 100,000 $8.33 $28.00 03/10/99 236.13
BC Telecom Inc. 60,000 $17.72 $26.48 02/01/99 49.44
</TABLE>
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(a) Number of shares held by the Fund on the final day of trading for the
issuer.
(b) Average purchase price of issuer's shares held by the Fund on the final
day of trading for the issuer.
(c) Closing price on the final day of trading for the issuer or the tender
price on the closing date of the tender offer.
(d) Represents average estimated return based on average cost per share and
closing price per share.

Note: See the Portfolio of Investments for a complete listing of holdings.
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3
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BARRON'S Roundtable

Mario Gabelli, our Chief Investment Officer, has appeared in the
prestigious Barron's Roundtable discussion annually since 1980. Many of our
readers have enjoyed the inclusion of selected and edited comments from Barron's
Roundtable in previous reports to shareholders. Once again, we are including
selected comments of Mario Gabelli from Barron's 2000 Roundtable. Discussion of
individual companies is not necessarily reflective of the Fund's entire
portfolio. For our shareholders who prefer to view the entire interview, the
complete text is available on the Internet at www.barrons.com.

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January 31, 2000 BARRON'S o Roundtable 2000
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----------------------------------------
BARRON'S
ROUNDTABLE
----------------

Mario Gabelli
Chairman, Gabelli Asset Management Inc.,
Rye, New York
----------------------------------------

For many fine, profitable and expertly managed companies on both sides of the
Atlantic, it was a bull market in name only in the past, peculiar year. Left by
the investment wayside as tech stocks, telecoms and cash-guzzling dot.coms
rushed by, many overlooked issues have traded down to single-digit
price/earnings multiples, if not historic lows. Which is just where certain
value-conscious members of the Barron's Roundtable like to buy them.

Roundtable 2000 concludes with the investment picks of Mario Gabelli --
this year, a selection of savvy media companies, as well as "old economy"
outfits transiting post-haste to "clicks-and-mortar." Mario's `99 Roundtable
recommendations shot up 46%, with mighty assists from Telephone & Data and
Liberty Media, both of which reappear on this year's list of favorites.

Gabelli: Just to recap, I think U.S. GDP will grow 3% this year, gross world
product will grow 3.5%, U.S. interest rates will back up to 6.5%-7%. The overall
stock market has no margin of safety, although there are some very underpriced
sectors that are very attractive, one of which is small-caps. Russell 2000
earnings will be up 35%. The other area I like is Europe. It's a terrific place
to invest, not for one year but for 10 years. Another thing I expect to see: a
continuation of deals, deals and more deals.

Last year I recommended 14 stocks. Five went down, nine went up and two
were taken over. These were the most diverse and dispersed returns I've had,
because my old-economy stocks just did not do well. New-economy stocks were up
substantially. Old-media did not do well, and new-media did well.

Q: What are you buying this year?

Gabelli: I look for a number of themes in 2000. Speed. The time to market is
important. Digital. Obviously, everything around the world is going wireless.
I'm also looking to see if my old-world companies are going from bricks and
mortar to clicks and mortar.

Q: Before you run through your list, what do you think about the AOL-Time Warner
deal?

Gabelli: What you have is scale -- global scale. You have, in addition, the
notion that content, not the delivery system, is coming to the forefront. How do
you leverage content? It doesn't matter what the platform is. The point is, you
have wonderful brands coming together, marrying up advertiser-supported and
transaction-supported media, and you're opening up a whole new world.

Q: Would you buy the combined stock?

Gabelli: You want an instant response? I would like to dust off my knowledge of
AOL. Time Warner closed today up 25, to 91-92. I was not uncomfortable saying,
before today, that Time Warner should trade up at 90-110 this year. It is there.
Do I want to buy it at these prices? I'm not sure. Let me do some more work. But
let me state again that this deal sets a new standard for global scale. You
cannot go into the world with a $50-$60 billion market cap and compete against
companies that can take the risk, that have $400 billion in market value.

Q: That's ridiculous. Disney is a very big company.

Gabelli: Is it?

Q: Yes. Very big in content, also. Have they necessarily done well because they
have a large capitalization? No.

Gabelli: There is an element. If I can spend an extra $10 million and go do
Internet and other things, and not worry
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4
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about something else, I will do it. That gives me extra leverage. It's like
building a moat and taking one little shovelful of dirt at a time and
reinforcing my moat over a long period of time. At the end of five or 10 years
you really have a powerful, powerful franchise. So I disagree.

[Mario went home, dusted off what needed dusting, and last week shared some
further thoughts on the world's biggest would-be merger.]

"Philosophically, I think the combined companies make a lot of sense," he said.
"With AOL now at $60 and the combined company selling for around 25 times
synergistic 2001 EBITDA, it's not what I would call a bargain-basement price.
But it's not expensive, given the mix of businesses and companies they are
trying to put together. From my end it's thumbs up on the deal, because I get to
see my rate of growth accelerate."

[Mario also had kudos for another deal announced last week, the pending merger
of Time Warner's music business with the music operations of Britain's EMI
Group. "With this deal Warner becomes a dominant player in the global
marketplace for music, with just $1.3 billion out of pocket," he said.]

Q: Let's move on.

Gabelli: Okay. Here are the stocks I'm going to talk about today. First, in the
old media world, I have recommended Liberty Media [now AT&T-Liberty Media Group]
for the past five years. I now have $1 billion of my clients' money entrusted to
John Malone [Liberty's chairman]. The stock popped today because they own 110
million shares of Time Warner. But what I like about Liberty is that they've got
it all in terms of giving consumers what they want, where they want it, at the
time they want it, and at a cost that allows the provider to make a profit.
Malone can create that value.

Q: We'll see. Next?

Gabelli: I am going to recommend Telephone & Data Systems, which I also
recommended a year ago. I can buy this company and get six-tenths of a share, or
$4 billion, of VoiceStream stock free. VoiceStream's a big player in wireless.
That's a pretty interesting place to be. Telephone & Data is trading around
$107-$110 a share. For this price I get a company that should have a
marked-to-model value four years out of $450 a share.

Then I'll talk about the ILECs [incumbent local exchange carriers], which
involves taking seven- to eight-multiple businesses and driving them to 10-11
times cash flow. I'm talking about companies such as BCE, Canada's largest
telecom provider; Citizens Utilities, CenturyTel. Switching gears, I'll
recommend stocks that are the beneficiaries of a change made by the Federal
Communications Commission. In August the FCC agreed to permit duopolies,
allowing TV station operators to own two stations in a given market. The prime
beneficiaries are companies such as Chris-Craft Industries, which controls BHC
and United Television, Granite Broadcasting and Paxson Communications. Paxson is
already becoming part of the NBC fold. Broadcasters have just been given an
enormous amount of the digital spectrum.

Q: Are all of these companies recommendations?

Gabelli: These are recommendations. I am ticking them off, just in case I run
out of time.

Q: We can't run out of time. You're talking.

Gabelli: I'll add another. USA Networks, Barry Diller's company, is a
combination of electronic commerce and entertainment. I recommended it a year
ago. I'm boring.

Q: You mean, that was just a sketch?

Gabelli: I just wanted to make sure I got everything in. Let's talk about
wireless. Here are some trends. First, growth. There are one billion wireless
communications users around the world, and that will continue to grow. Two: AT&T
started using buckets, so you could buy buckets of minutes for a dime. It
created enormous demand because people started saying, "This is part of our
lifestyle. Don't even worry about costs." Third, the calling party pays. This
will happen in the U.S., although it's prevalent everywhere else. Fourth, in the
future we're going to see prepaid instead of post-paid plans.

But the real driver of wireless is data over the Internet. If 10% of one
billion users took a special data pack-and I think that is de minimis
penetration-at $10 a month, that's $120 a year times 100 million users. Just
multiply that out at 60% margins, and you have $1 trillion in stock-market
value. It's happening now.

Q: How do you invest in it?

Gabelli: For one thing, you have global consolidation. Vodafone AirTouch is
attempting to buy Mannesmann, which just bought Orange. Mannesmann sells at 230
euros. Klaus Esser [CEO of Mannesmann] doesn't want to be taken over. The
shareholders are going to vote against that. Mannesmann is going to be sold to
Vodafone, unless he finds a white knight.

John Neff: He'd need an awfully big one.

Gabelli: It could be a consortium. It could be a bunch of individuals. If I were
Esser I'd sit down with Vodafone and say: "Look, Mr. Gent, let's do it together.
Get me some cash, because cash is king. And the second thing is, you be chairman
and I'll be the CEO." Make love instead of war. I think Esser's a good manager
and he's done a great job. But it's just like the Italians. Telecom Italia
didn't get it when Olivetti launched a hostile offer.

Another thing. AT&T is going to spin off its wireless business. They
announced they were filing today, but they've talked about it before. That will
set a new standard for valuations. In addition, the FCC is going to offer up new
spectrum. And this time around, unlike guys like me who were bidding on it, the
Ciscos will follow the path of Motorola and actively bid for spectrum. I expect
the prices of the auctions to go up substantially. Also, there is a bankrupt
company called NextWave, and everyone has been trying to get their licenses. A
court of appeals just threw that back to the FCC. What happens next also will
set the tone for the future of wireless.

Q: You mentioned additional
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5
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TV spectrum. How does this fit into the picture?

Gabelli: The television community has incredible spectrum that is not being
valued in their stocks. The stocks today are being looked at traditionally, for
the benefits of duopoly. Some station managements don't get it. You have to stay
in the top 50 markets to benefit.

Lastly, there's the automobile market -- what General Motors is doing with
its OnStar technology that will give you data, voice, entertainment. A complete
package of excite and delight. Just think of 200 million cars on the road in the
U.S., 600 million around the world, 50 million new vehicles produced a year.
Each one generating for the manufacturer a built-in $10 a month of recurring
revenues, on which they get 50% margins. This is going to be a bonanza for a lot
of vendors.

Q: Let's get back to the beneficiaries of all these trends.

Gabelli: Telephone & Data has 62 million shares selling at about $110 each, so
that's $6.8 billion of market value. The holding company has $1 billion of debt.
You get for that 600,000 ILECs in rural America. Each one can then be used as a
bridge into a larger market, which opens up significant growth opportunities
under what is called a CLEC, or competitive local exchange carrier. The company
also has DSL [digital subscriber lines] capability. Plus, it has three million
cellular customers. Each of its VoiceStream shares is worth $72. When you buy
TDS you also get 1.15 shares of US Cellular, now trading around 90. That gets
you to $105 a share. This suggests you're getting the telephone business free.
It's worth at least another $60. The value of the company today, if it were sold
pretax, is about $225 a share. In five years, assuming 30% compounded growth in
earnings, it should be $450 a share. It's simple math.

Q: It's Mario math. There's nothing simple about it. What could go wrong with
your projections?

Gabelli: Brain cancer, I suppose, if there's any truth to these rumors of the
health risks of the wireless world. Also, bandwidth is a challenge, or could be
in three years. They could run out of spectrum. The whole system could crash
because there is too much complexity on it, too much demand.

Q: Refresh us. What was the next name on your list?

Gabelli: CenturyTel. I didn't like their corporate governance some time ago, and
sold a lot of stock. But it's getting interesting again. The company is kind of
a hybrid, a combination of rural cellular and rural telephony. It's got 138
million shares, trading at $43 apiece on the New York Stock Exchange. Earnings
this year will be about $2, marching ahead at a 25% rate. The value of the
enterprise, going out four years, should be close to $100. They are buying some
of the telephone-company spinoffs of GTE.

Q: And what was your next pick?

Gabelli: My next stock is Citizens Utilities. It sells for around $14. The
company is selling its gas, electric and water businesses for very fancy prices,
and buying telephone systems from GTE and US West at an eight multiple. By 2003
I expect they'll do $2 billion of revenues and $1 billion of EBITDA in the
telephone business. And they'll have a CLEC business, in part, through a public
company called Electric Lightwave. I expect the company at that point will have
a value, without a multiple expansion, of close to $35 a share. If they can get
speed through DSL lines, the eight multiple telephone systems will turn into a
10-11 multiple business.

I also have some Canadian companies that are extraordinarily cheap. One is
BCT.Telus Communications, the operator in British Columbia. It's probably the
cheapest telephone company in the world. Based on our work, you are buying their
telephone business at 2.5 times EBITDA. It is a combination of a merger between
a company in British Columbia and a company in --

Archie MacAllaster: Alberta.

Gabelli: Thank you. It's good to have a Canadian here. My sense is that when the
World Trade Organization changes the rules, GTE will take in the balance. So its
a win-win for investors.

BCE in turn is also going through a reorganization. For every share of BCE
you have 0.84 shares of Northern Telecom. [Last week BCE announced it will spin
off almost all of its Nortel stake.] Southwestern Bell, which merged with
Ameritech, took a piece out of BCE. BCE is up around 89 today. [Late last week
it jumped sharply on the Nortel news, and now trades around 104.] I'd also like
to mention Rogers Communications. I had a running battle with them about 10
years ago in the pages of Barron's.

Q: They won.

Gabelli: The stock went from 25 to 125. The investment bankers had given a
fairness valuation at $30, and I said it was worth $100. I stayed away for
a while, but in the last two years I've been accumulating both Rogers
Communications and Rogers Cantel, the cellular arm. AT&T and British
Telecom have put a stake-out position in Rogers Cantel, the cable
operation. Microsoft has

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Company/Symbol Exchange 1/10 Close
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Telephone & Data Sys/TDS ASE 115 7/8
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CenturyTel/CTL NYSE 44 1/8
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Citizens Utilities/CZN NYSE 14 9/16
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BCT.Telus/BTS Toronto C$38.75
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BCE/BCE NYSE 88 13/16
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Rogers Comm/RG NYSE 25 7/8
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Rogers Cantel/RCN NYSE 41
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Chris-Craft Industries/CCN NYSE 72 13/16
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Granite Broadcasting/GBTVK NNM 11
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Paxson Comm/PAX ASE 11 11/16
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AT&T-Liberty Media/LMGA NYSE 57 5/8
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USA Networks/USAI NNM 55 3/4
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6
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taken a carve-out position in Rogers Communications. I think Mr. Rogers this
time around allows the values to be surfaced.

Q: Does he still talk to you, Mario?

Gabelli: Yes, we're back chatting. Next, POTS. That used to be plain old
telephone service. Now I'm using it as plain old television service. The model
for the television operator in the U.S. has been a single source of revenues,
advertiser supported. The model in the future is going to be many revenue
sources. TiVo, Wink, Replay are all changing the way television is coming
together.

The FCC is going to change the rules again. They started with duopoly.
Second, they'll probably allow operators ownership of a second network. We'll
know that in the next 90 days, when UPN and Sumner Redstone and Mel Karmazin go
down to the FCC to see if they can get UPN through. [Under current FCC rules,
Viacom might have to sell its stake in UPN as a condition of its merger with
CBS.] I think we'll see cross-ownership of TV stations and newspapers in large
markets, and the government might raise the cap above 35% in terms of market
coverage of a given television operator. Those are all potential changes.

Q: What do they mean in dollars and cents?

Gabelli: Certain station operators will have an opportunity for a second revenue
stream. I don't know how the economic models work down the road, because they
are evolving. But one thing is clear: Whatever model we had that said a TV
station is worth 12 times EBITDA had to be changed in major markets for duopoly.

Another thing that has to change is digital. TV stations receive extra
spectrum. Every engineer in the world knows that the limitation to delivery is
spectrum and bandwidth. They're working on finding ways to use the spectrum.
This spectrum is incredibly valuable, and it will change the valuation
parameters of station operators. It reminds me of the way we looked at real
estate in the 1980s, when people bought companies to break up the leases.

Q: Surely certain companies stand to benefit more than others.

Gabelli: I'm recommending Chris-Craft Industries again. It's selling for 71-72,
and there are 41 million shares outstanding. The key question is who buys it.
They hired an investment banker, Allen & Co., to try to sell the company. So,
does Mel do Herb [Siegel, chairman of Chris-Craft] before John [Madigan,
chairman and CEO of Tribune] does him? Or is Rupert [Murdoch] a wild card in
this equation? We like it. You make an arbitrage spread. [BHC Communications is
a majority-owned subsidiary of Chris-Craft, and is in turn the majority holder
of station-operator United Television].

Q: Where does Paxson fit in?

Gabelli: Bud Paxson [Lowell Paxson, chairman of Paxson Communications] is not
unknown to controversy. Paxson Communications, however, has enormous spectrum in
lots of markets. The stock is trading at 11 1/2 . They did a deal with NBC,
which in essence took over the operations of the company. They're waiting for
the FCC to change the rules. If they can find a way to tap into the spectrum
gold mine, they could significantly increase the value of the company, because
they have a footprint in the U.S. that covers 60% of the country.

Then there's Granite Broadcasting, which is selling for $10 or $11. It has
19 million shares and a $200 million market cap. The company owns two stations
in San Francisco, one in Detroit, two in upstate New York, and a whole bunch
elsewhere. They've also sold a bunch of stations. W.D. Cornwell [chairman and
CEO of Granite] was an ex-Goldman Sachs guy. This time around, I think he'll
sell the company.

Q: Any further thoughts on Liberty?

Gabelli: Give me Liberty. John Malone. 1.3 billion shares. The stock closed
around 50 last Friday. The company owns shares of other companies that have a
market value of about $60 billion. If you put it together you have a company
with assets of, let's say, $70 a share. It's a simple concept. In this world of
uncertainty, where you might want to sell short CMGI or Internet Capital, there
are these companies that can take the content on a global basis, marry it up
with distribution channels and create currencies to play with. Liberty does
that, and I am buying it at less than the value of the assets.

Along the same lines is USA Networks. The stock's at 50 and there are 370
million shares. In the e-commerce area they have the Home Shopping Network. They
have hotel reservations and such through Ticketmaster Online-CitySearch. In
entertainment they have Sci-Fi, a terrific cable network. It's about 20% owned
by Liberty and Seagram owns about 45%. And they have spectrum, and extra
spectrum they can get to go into the digital world. Total revenues are about
$3.3 billion.

Scott Black: Unlike Liberty, which is cheap when you break up the pieces, USA
Network is selling for 17-18 times forward cash flow. That's a higher multiple
than almost every other major media stock.

Gabelli: That's a very conventional way to look at it. In the new media and the
new economy, Barry Diller gets it. He doesn't need to do synergistic deals. What
he gets is the fact that you can create currencies and create values by doing
that. He also is an operating guy, so he brings some traditional old-world
baggage.

I don't know where Barry is going, but he has a terrific passion for
programming. So he's probably trying to buy the MGM library from Kirk Kerkorian.
He is probably trying to buy Romance, or Bravo, or American Movie Classics from
Cablevision. His attempt to purchase Lycos was a precursor to what we're seeing
today with AOL and Time Warner. He has created his own portal through
Ticketmaster Online-CitySearch. Based on traditional metrics it's not a classic
value stock. But I see the ability to create enormous synergies that the market
will pay for.

Q: Ladies, gentlemen -- thank you.
- --------------------------------------------------------------------------------

7
<PAGE>

Barron's Closed-End Fund Section

The net asset value of the Gabelli Global Multimedia Trust appears in
Monday's The Wall Street Journal, in Sunday's The New York Times in the
Closed-End Funds column under the heading "Specialized Equity Funds", and in
Barron's Mutual Funds/Closed-End Funds section under the heading "Specialized
Equity Funds". You may also call 1-(800)-GABELLI (1-800-422-3554) to obtain
daily NAVs.

The following chart appeared in Barron's on January 24, 2000. To review
what is presented, the first column lists the fund name and its trading symbol,
with the second column indicating the exchange on which it trades. In our case
the Multimedia Trust trades on the New York Stock Exchange under the symbol
"GGT".

The "NAV" column illustrates what the actual portfolio value is worth per
share - total assets minus the liabilities divided by the number of shares
outstanding. The market price is simply the price at which the fund is trading
on the exchange. Closed-end funds have a limited number of shares outstanding.
To buy or sell shares investors use the NYSE to complete their transactions.

Concerning the market price, closed-end funds can either trade at a
premium or a discount to the NAV. The "Prem/Disc" column illustrates the
percentage difference the market price varies from the NAV. As of the close on
Friday, January 21, 2000, the Multimedia Trust's last trade was at a 6.0%
discount to NAV. The final column indicates the total return (change in market
value plus an adjustment for reinvestment of distributions) of the fund over the
twelve months ending January 21, 2000.

- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
52 Week
Stock Market Prem Market
Fund Name (Symbol) Exch NAV Price /Disc Return
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASA Limited (ASA) N 24.11 18 1/4 -24.3 10.9
C&S Realty (RIF) A 6.68 7 1/8 +6.7 -13.7
Centrl Fd Canada (CEF) A 3.87 3 9/16 -8.0 -9.3
Cohen&Steers Tot Ret (RFI) N 10.96 1 15/16 +3.2 -10.8
Duff&Ph Util Inc (DNP) N 9.13 8 7/8 -2.7 -13.1
Dundee Prec Mtls (DPM.A) T 13.79 8 19/32 -37.6 -7.0
First Financial (FF) N 8.71 7 15/16 -8.8 -18.3
Gabelli Gl Multimedia (GGT) N 20.35 19 1/8 -6.0 104.5
Gabelli Utility (GUT) N 7.70 7 11/16 -0.1 NS
H&Q Health Inv (HQH) N 34.02 27 -20.6 91.3
H&Q Life Sci Inv (HQL) N 28.34 23 -18.8 92.9
INVESCO Gl Hlth (GHS) N 20.39 16 3/16 -20.6 2.4
J Han Bank (BTO) N 8.26 7 1/4 -12.2 -19.0
LCM Internet Growth (FND) A 14.27 12 1/2 -12.4 NS
Petroleum & Res (PEO) N 41.54 34 1/2 -17.0 19.0
Seligman New Tech (N/A) Z 40.20 NA NA NS
SthEastrn Thrift (STBF) O 16.93 14 1/2 -14.4 -17.2
Thermo Opprtunty (TMF) A 10.94 9 -17.7 38.5
</TABLE>

Source: Barron's
- --------------------------------------------------------------------------------

Stock Repurchase Plan

The Gabelli Global Multimedia Trust is authorized to repurchase up to
1,000,000 shares of the Multimedia Trust's outstanding shares. Pursuant to this
stock repurchase plan, 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

8
<PAGE>

from the net asset value of the shares. In total, through December 31, 1999,
663,233 shares were repurchased in the open market.

Let's Talk Stocks

The following are stock specifics on selected holdings of the Multimedia
Trust. 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.

Aerial Communications Inc. (AERL - $60.875 - Nasdaq) is an 82%-owned subsidiary
of Telephone & Data Systems (TDS) that has Personal Communications Services
("PCS") access covering 26.2 million people. On September 20, Aerial agreed to
be acquired by VoiceStream Wireless (VSTR - $142.3125 - Nasdaq) in a $3.3
billion stock transaction. TDS's ownership of Aerial will be converted to
VoiceStream stock, resulting in TDS owning more than 36 million shares of VSTR.
Upon consummation of the Aerial and Omnipoint acquisitions, VoiceStream will
emerge as a major national PCS carrier with licenses covering over 250 million
people.

Cablevision Systems Corp. (CVC - $75.50 - AMEX) is one of the nation's leading
communications and entertainment companies, with a portfolio of operations that
span state-of-the-art, high-speed multimedia delivery, subscription cable
television services, championship professional sports teams and national cable
television networks. Headquartered in Bethpage, N.Y., Cablevision serves more
than 3.4 million cable customers primarily in three core markets: New York,
Boston and Cleveland. Cablevision is a leader in delivering cutting-edge
technological innovation, such as Optimum TV, to the home. Through its Rainbow
Media Holdings subsidiary, Cablevision manages and develops internationally
recognized content offerings such as the popular national television networks
American Movie Classics, Bravo and The Independent Film Channel. Cablevision has
a controlling interest in New York City's famed Madison Square Garden, which
includes the arena complex, the N.Y. Knicks, the N.Y. Rangers and the MSG
network. Cablevision operates Radio City Entertainment and holds a long term
lease for Radio City Music Hall, home of the world famous Rockettes.

Chris-Craft Industries Inc. (CCN - $72.125 - NYSE), through its 80% ownership of
BHC Communications (BHC - $160.00 - AMEX), is primarily a television
broadcaster. BHC owns and operates UPN affiliated stations in New York (WWOR),
Los Angeles (KCOP) and Portland, Oregon (KPTV). BHC also owns 58% of United
Television (UTVI - $137.6875 - Nasdaq), which operates an NBC affiliate, an ABC
affiliate and five UPN affiliates. United Television recently completed the
purchase of WHSW in Baltimore for $80 million. The station's call letters were
changed to WUTB and the station became a UPN affiliate. UTVI also acquired WRBW,
a UPN affiliate in Orlando, for $60 million in July 1999. Chris-Craft's
television stations constitute one of the nation's largest television station
groups, reaching approximately 22% of U.S. households. Chris-Craft is a major
beneficiary of the recent FCC ruling allowing television duopoly, or ownership
of two stations in a market. The Chris-Craft complex is debt free and strongly
positioned to expand its operations, with roughly $1.5 billion in cash and
marketable securities.

Liberty Corp. (LC - $42.1875 - NYSE), headquartered in Greenville, S.C., is a
holding company with operations in broadcasting and insurance. Liberty's Cosmos
Broadcasting owns and operates eleven network affiliated television stations in
the Southeast and Midwest. Six stations are affiliated with NBC, three with ABC
and two with CBS. These stations serve more than four million households.
Liberty Life is a regional insurer, with North Carolina, South Carolina and
Louisiana accounting for more than 50% of its premium volume. The insurance
segment specializes in providing agency (home service) and mortgage protection,
life and health insurance. In February 1999, Liberty hired an investment banker
and began a strategic review which may result in a spinoff.

9
<PAGE>

Liberty Media Group (LMG'A - $56.75 - NYSE) is engaged in businesses which
provide programming services, including production, acquisition and distribution
through all available media formats, as well as businesses engaged in electronic
retailing, direct marketing and other services. LMG holds interests in
globally-branded entertainment networks such as Discovery Channel, USA Network,
QVC, Encore and STARZ!. Liberty's assets also include interests in international
video distribution businesses, international telephony and domestic wireless,
plant and equipment manufacturers, and other businesses related to broadband
services. Liberty Media Group Class A and Class B common stock are tracking
stocks of AT&T Corp. (T - $50.75 - NYSE) and are now traded on the New York
Stock Exchange.

Telecom Italia Mobile SpA (TIM.MI - $11.17 - Milan Stock Exchange), formerly a
subsidiary of Telecom Italia (the provider of wired local and long distance
telephone service in Italy), was spun-off in July 1998 and began trading on the
Milan Stock Exchange as an independent company. Telecom Italia Mobile is the
leading cellular provider in Italy. The company is the largest cellular provider
in Europe with close to 15 million GSM subscribers. The competitive environment
in which Telecom Italia Mobile operates remains favorable, with only two
competitors, Omnitel and Wind.

Telephone & Data Systems Inc. (TDS - $126.00 - AMEX) is a diversified
telecommunications company with established cellular and local telephone
operations and a developing personal communications services ("PCS") business.
TDS provides high quality telecommunications services to three million customers
in 35 states. TDS owns 81.1% of United States Cellular Corp. (USM - $100.9375 -
AMEX), the nation's seventh largest cellular telephone company. It also owns
82.4% of Aerial Communications Inc. (AERL - $60.875 - Nasdaq), TDS's PCS
subsidiary which owns the licenses to provide PCS service in six major trading
areas ("MTAs") encompassing approximately 27.6 million population equivalents.
On September 20, 1999, VoiceStream Wireless (VSTR - $142.3125 - Nasdaq)
announced the acquisition of Aerial in a $3.3 billion transaction. Pro-forma for
this acquisition, TDS will own over 36 million shares of VoiceStream.

USA Networks Inc. (USAI - $55.25 - Nasdaq), through its subsidiaries, engages in
diversified media and electronic commerce businesses that include: electronic
retailing, ticketing operations and television broadcasting. Chairman and CEO
Barry Diller has brought together under one umbrella: the USA Network, the
Sci-Fi Channel, USA Networks Studios, USA Broadcasting, The Home Shopping
Network and the Ticketmaster Group. The plan is to integrate these assets,
leveraging programming, production capabilities and electronic commerce across
this strong distribution platform.

Viacom Inc. (VIA'A - $60.4375 - NYSE), long a major provider of entertainment
"content", has evolved into one of the world's dominant media companies. The
additions of Paramount Communications, Blockbuster Entertainment (acquired in
1994), and publisher Simon & Schuster make Viacom one of the largest
entertainment and publishing companies. Non-core assets are being divested and
debt has been reduced to approximately $8 billion. Viacom is focusing on global
expansion of its media franchises. Viacom is particularly well-positioned in
music (notably MTV) and cable networks (such as Nickelodeon). Viacom recently
announced its intentions to merge with CBS (CBS - $63.9375 - NYSE).

Dividends

The Trust recently distributed a dividend of $3.12 per share to Common
Shareholders on December 27, 1999. For the twelve months ended December 31,
1999, the Trust distributed a total of $3.62 per share to Common Shareholders.
Our Preferred Shareholders were recently paid a dividend of $0.495 per share on
December 27, 1999. For the twelve months ended December 31, 1999, the Preferred
Shareholders received a total distribution of $1.98 per share, which is the
annual dividend rate on the Preferred Shares.

10
<PAGE>

Daily NAVs Now Distributed by Nasdaq

Since our inception, we have made the net asset value available on nightly
recordings through 1-800-GABELLI. Now, Nasdaq is also disseminating the daily
per share net asset values (NAVs) for the Gabelli Global Multimedia Trust, which
is traded on the New York Stock Exchange. The NAV ticker symbol via Nasdaq is
"XGGTX".

The NAVs are available through any stock quote lookup service and on
broker Nasdaq level one terminals. The dissemination of daily NAVs allows
investors and brokers to better track the long-term performance of the Fund's
underlying portfolio. We applaud Nasdaq's efforts in making closed-end funds'
NAVs available on a daily basis.

Internet

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

In Conclusion

The time for celebrating last year's returns is over. We are now hard at
work assessing multimedia industry trends, monitoring existing portfolio
holdings, and evaluating evolving opportunities. We enjoy the work and are
confident that our efforts should continue to produce attractive returns for
shareholders.

Sincerely,

/s/ Mario J. Gabelli

Mario J. Gabelli

President and Chief Investment Officer

January 31, 2000

- --------------------------------------------------------------------------------
Top Ten Holdings
December 31, 1999
-----------------

Liberty Media Group Cablevision Systems Corp.
Telephone & Data Systems Inc. Aerial Communications Inc.
Viacom Inc. Chris-Craft Industries Inc.
USA Networks Inc. Telecom Italia Mobile Spa
Liberty Corp. UnitedGlobalCom Inc.
- --------------------------------------------------------------------------------

NOTE: The views expressed in this report reflect those of the portfolio manager
only through the end of the period stated in this report. The manager's views
are subject to change at any time based on market and other conditions.

11
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS
December 31, 1999

Market
Shares Cost Value
------ ---- -----
COMMON STOCKS -- 97.6%
COPYRIGHT/CREATIVITY COMPANIES -- 36.5%
Advertising -- 0.1%
4,000 Bowlin Outdoor Advertising
& Travel Centers Inc.+ ........ $ 20,163 $ 21,500
200 Havas Advertising SA ............ 19,126 85,213
100 Lamar Advertising Co. ........... 3,279 6,056
200 Publicis SA ..................... 13,971 75,544
------------ ------------
56,539 188,313
------------ ------------
Cable Programmers -- 4.6%
60,000 CANAL+, ADR+ .................... 431,000 1,723,658
6,000 Flextech plc+ ................... 37,551 116,302
170,000 USA Networks Inc.+ .............. 3,198,097 9,392,500
------------ ------------
3,666,648 11,232,460
------------ ------------
Computer Software and Services -- 0.6%
1,000 Activision Inc.+ ................ 6,415 15,313
360 America Online Inc.+ ............ 2,800 27,157
3,000 Atlus Co. Ltd. .................. 17,662 36,410
2,000 Barnesandnoble.com Inc.+ ........ 31,750 28,375
10,000 Block (H&R) Inc. ................ 319,962 437,500
2,000 CDNow Inc.+ ..................... 12,446 19,750
2,000 EarthLink Network Inc.+ ......... 45,250 85,000
500 Electronic Arts Inc.+ ........... 11,176 42,000
1,000 Intel Corp. ..................... 16,250 82,312
3,000 Internet.com Corp.+ ............. 43,125 156,750
1,500 Microsoft Corp.+ ................ 11,632 175,125
2,000 Mobius Management Systems+ ...... 12,540 15,875
100 Pixar Inc.+ ..................... 2,200 3,537
10,000 Talk.com Inc.+ .................. 46,603 177,500
500 Ticketmaster Online-City
Search Inc.+ .................. 7,000 19,219
21,000 Xionics Document
Technologies Inc.+ ............ 133,000 219,187
------------ ------------
719,811 1,541,010
------------ ------------
Consumer Products -- 0.0%
4,000 Mattel Inc. ..................... 64,200 52,500
------------ ------------
Diversified Publishers -- 7.5%
10,000 Arnoldo Mondadori
Editore SpA ................... 63,827 317,284
30,000 Belo (A.H.) Corp., Cl. A ........ 373,506 571,875
5,000 Central Newspapers Inc.,
Cl. A ......................... 71,479 196,875
2,000 Dow Jones & Co. Inc. ............ 93,444 136,000
10,000 EMAP plc ........................ 191,883 202,559
3,500 Hachette Filipacchi Medias ...... 87,284 222,099
20,000 Harcourt General Inc. ........... 788,970 805,000
15,000 Harte-Hanks
Communications Inc. ........... 166,250 326,250
1,000 Hollinger International Inc. .... 16,175 12,937
4,500 Houghton Mifflin Co. ............ 98,156 189,844
58,000 Independent Newspapers
Ltd., ORD ..................... 172,446 380,318
7,000 Knight-Ridder Inc. .............. 199,215 416,500
22,000 Lee Enterprises Inc. ............ 443,075 702,625
20,000 McClatchy Newspapers
Inc., Cl. A ................... 546,094 865,000
8,000 McGraw-Hill
Companies Inc. ................ 205,450 493,000
22,000 Media General Inc., Cl. A ....... 1,017,118 1,144,000
18,000 Meredith Corp. .................. 231,637 750,375
115,000 Nation Multimedia Group+ ........ 110,028 58,011
100,000 New Straits Times Press
Berhad ........................ 296,714 240,789
125,000 Oriental Press Group ORD ........ 46,315 15,919
100,000 Penton Media Inc. ............... 1,444,100 2,400,000
10,000 Playboy Enterprises Inc.,
Cl. A+ ........................ 97,125 205,000
113,400 Post Publishing Co. Ltd.+ ....... 240,906 93,333
40,000 PRIMEDIA Inc.+ .................. 480,497 660,000
28,000 Pulitzer Inc.. .................. 484,774 1,128,750
60,000 Reader's Digest Association
Inc., Cl. B ................... 1,353,117 1,590,000
34,452 Singapore Press Holdings Ltd. ... 446,286 746,753
385,000 South China Morning Post
Holdings ORD .................. 273,458 331,833
300 SPIR Communication .............. 23,329 23,570
15,000 Telegraaf Holdingsmij - CVA ..... 285,271 332,393
50,000 Thomas Nelson Inc. .............. 595,437 462,500
4,500 Times Mirror Co., Cl. A ......... 106,131 301,500
50,000 Times Publishing Ltd. ........... 126,892 108,676
30,000 Tribune Co. ..................... 869,206 1,651,875
11,300 United News & Media
plc, ADR ...................... 268,402 288,150
800 Wiley (John) & Sons Inc.,
Cl. A ......................... 5,692 13,300
4,000 Wolters Kluwer NV ............... 90,625 135,374
2,000 Ziff-Davis Inc. ................. 21,287 31,625
------------ ------------
12,431,601 18,551,892
------------ ------------
Entertainment Production -- 11.7%
250,000 Ascent Entertainment
Group Inc.+ ................... 2,988,217 3,171,875
2,522 EMI Group plc ................... 12,682 24,748
20,000 EMI Group plc, ADR .............. 317,997 382,500
7,000 Grammy Entertainment plc+ ....... 55,457 23,789
7,000 Granada Group plc ............... 35,566 70,952
7,000 GTECH Holdings Corp.+ ........... 118,256 154,000
2,000 Harvey Entertainment Co.+ ....... 20,023 7,625
415,000 Liberty Media Group, Cl. A+ ..... 2,780,089 23,551,250
1,000 Martha Stewart Living
Inc., Cl. A+ .................. 18,000 24,000
28,710 Metro-Goldwyn-Mayer Inc.+ ....... 474,983 676,479
300 NRJ SA .......................... 22,694 206,537
3,000 Princeton Video Image Inc. ...... 21,000 24,000
100,000 Shaw Brothers
(Hong Kong) Ltd. .............. 145,929 116,421
10,000 TV Guide Inc., Cl. A+ ........... 101,620 430,000
1,000 World Wrestling Federation
Entertainment Inc.+ ........... 17,000 17,250
------------ ------------
7,129,513 28,881,426
------------ ------------
Global Media and Entertainment -- 9.3%
481 Boston Celtics Ltd. ............. 4,267 4,810
60,000 Disney (Walt) Co. ............... 1,560,349 1,755,000
40,000 Fox Entertainment Group Inc. .... 902,750 997,500
40,000 Grupo Televisa SA, GDR+ ......... 901,469 2,730,000
21,000 News Corp. Ltd., ADS ............ 413,278 803,250
40,000 Seagram Co. Ltd. ................ 1,602,500 1,797,500
3,000 Sony Corp., ADR ................. 306,214 854,250
48,000 Time Warner Inc. ................ 866,488 3,477,000
175,000 Viacom Inc., Cl. A+ ............. 2,673,590 10,576,562
------------ ------------
9,230,905 22,995,872
------------ ------------

See accompanying notes to financial statements.

12
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999

Market
Shares Cost Value
------ ---- -----
COMMON STOCKS (Continued)
COPYRIGHT/CREATIVITY COMPANIES (Continued)
Hotels and Gaming -- 2.5%
10,000 Aztar Corp.+ .................... $ 51,125 $ 108,750
5,000 Churchhill Downs Inc. ........... 102,432 112,813
112,000 Gaylord Entertainment Co., Cl. A 2,979,812 3,353,000
650,000 Ladbroke Group plc .............. 2,515,435 2,081,516
8,000 Mirage Resorts Inc.+ ............ 122,650 122,500
10,000 Park Place
Entertainment Corp.+ .......... 61,344 125,000
2,500 Quintel Entertainment Inc.+12,500 22,500
4,000 Starwood Hotels & Resorts
Worldwide Inc. ................ 81,825 94,000
------------ ------------
5,927,123 6,020,079
------------ ------------
Information Publishing -- 0.2%
15,000 Berlitz International Inc.+ ..... 280,751 257,813
8,000 Data Broadcasting Corp.+ ........ 52,250 66,000
1,000 Dun & Bradstreet Corp. .......... 26,332 29,500
500 Scholastic Corp.+ ............... 16,500 31,094
------------ ------------
375,833 384,407
------------ ------------
TOTAL COPYRIGHT/CREATIVITY
COMPANIES ..................................... 39,602,173 89,847,959
------------ ------------
DISTRIBUTION COMPANIES -- 61.1%
Broadcasting -- 12.1%
90,000 Ackerley Group Inc. ............. 690,688 1,631,250
8,550 American Tower Corp., Cl. A+ .... 126,876 261,309
1,000 AMFM Inc.+ ...................... 7,157 78,250
2,500 Audiofina SA .................... 118,223 187,726
2,000 BHC Communications Inc., Cl. A .. 209,550 320,000
2,000 British Sky Broadcasting
Group, ADR .................... 47,975 185,500
18,000 CanWest Global
Communications Corp. .......... 92,012 203,256
2,000 Carlton Communications plc, ADR 63,625 95,250
31,730 CBS Corp.+ ...................... 1,063,879 2,028,737
60,000 Chris-Craft Industries Inc.+ .... 2,459,849 4,327,500
1,078 Clear Channel
Communications Inc.+ .......... 10,483 96,211
8,333 Corus Entertainment Inc.,
Cl. B+ ........................ 33,927 170,297
3,000 Cox Radio Inc., Cl. A+ .......... 55,500 299,250
4,000 CTV Inc.+ ....................... 33,592 62,626
500 Emmis Communications
Corp., Cl. A+ ................. 10,489 62,320
20,120 Fisher Companies Inc. ........... 1,082,695 1,242,410
1,000 General Electric Co. ............ 29,306 154,750
92,500 Granite Broadcasting Corp.+ ..... 912,235 936,562
13,125 Gray Communications
Systems Inc. .................. 172,625 232,148
60,000 Gray Communications
Systems Inc., Cl. B ........... 810,062 810,000
7,000 Groupe AB SA, ADR+ .............. 42,850 39,375
5,000 Grupo Radio Centro,
SA de CV, ADR ................. 42,937 41,875
38,000 Hearst-Argyle Television Inc.+ .. 378,726 1,011,750
2,000 Infinity Broadcasting Corp.+ .... 41,000 72,375
700 LaGardere S.C.A. ................ 12,878 38,074
150,000 Liberty Corp. ................... 6,929,556 6,328,125
400 Metropole TV M6 SA .............. 35,208 198,227
1,500 Nippon Television Network ....... 507,941 1,761,770
5,000 NTN Communications Inc.+ ........ 24,062 18,750
67,000 Paxson Communications
Corp., Cl. A+ ................. 617,351 799,812
500 Radio One Inc.+ ................. 16,937 46,000
1,525 SAGA Communications
Inc., Cl. A ................... 9,710 30,881
17,000 Salem Communications
Corp., Cl. A+ ................. 399,500 384,625
2,000 SBS Broadcasting SA+ ............ 42,022 97,375
1,000 Sinclair Broadcast Group Inc.+ .. 12,687 12,203
43,000 Sistem Televisyen
Malaysia Berhad ............... 41,566 21,953
1,000 Spanish Broadcasting
System Inc.+ .................. 20,000 40,250
50,000 Television Broadcasting
Ltd. ORD ...................... 187,673 340,902
2,500 Television Francaise 1 .......... 249,649 1,309,425
55,000 Tokyo Broadcasting
System Inc. ................... 812,002 1,862,582
3,000 TV Azteca, SA de C.V.+ .......... 36,350 27,000
12,600 United Television Inc. .......... 1,066,682 1,734,862
1,000 Wink Communications Inc.+ ....... 16,000 60,062
4,000 Young Broadcasting Inc.,
Cl. A+ ........................ 202,250 204,000
------------ ------------
19,776,285 29,867,605
------------ ------------
Business Services -- 1.2%
15,000 Carlisle Holdings Ltd.+ ......... 78,754 180,000
1,000 CheckFree Holdings
Corp.+ ........................ 11,040 104,500
1,000 Convergys Corp.+ ................ 17,737 30,750
9,400 Donnelley (R.H.) Corp. .......... 119,636 177,425
2,000 IMS Health Inc. ................. 1,899 54,375
26,100 Vivendi ......................... 1,112,375 2,356,829
------------ ------------
1,341,441 2,903,879
------------ ------------
Cable -- 6.3%
6,000 Austar United
Communications Ltd.+ .......... 21,083 24,028
65,000 Cablevision Systems
Corp., Cl. A+ ................. 958,333 4,907,500
10,000 Charter Communications
Inc., Cl. A+ .................. 190,000 218,750
5,000 Comcast Corp., Cl. A ............ 35,039 239,375
7,000 Comcast Corp., Cl. A
Special ....................... 53,073 353,937
50,000 MediaOne Group Inc.+ ............ 977,823 3,840,625
10,000 Mercom Inc.+ (b) ................ 101,075 120,000
5,622 NTL Inc.+ ....................... 115,929 701,344
13,090 Telewest Communications
plc, ADR+ ..................... 201,579 723,222
60,000 UnitedGlobalCom Inc.,
Cl. A+ ........................ 507,618 4,237,500
10,000 Videotron Groupe ................ 94,010 169,726
1,000 Wireless One Inc.+ .............. 2,204 1,300
------------ ------------
3,257,766 15,537,307
------------ ------------
Consumer Services -- 0.2%
10,000 Allied Domecq plc ............... 57,688 49,428
5,992 Cendant Corp.+ .................. 119,391 159,162
500 Department 56 Inc.+ ............. 8,775 11,312
15,000 Lillian Vernon Corp. ............ 223,875 166,875
8,000 Travel Services
International Inc. ............ 102,977 73,000
------------ ------------
512,706 459,777
------------ ------------

See accompanying notes to financial statements.

13
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999

Market
Shares Cost Value
------ ---- -----
COMMON STOCKS (Continued)
DISTRIBUTION COMPANIES (Continued)
Energy and Utilities -- 0.4%
50,000 El Paso Electric Co.+ ........... $ 396,002 $ 490,625
10,000 New England
Electric System ............... 484,117 517,500
------------ ------------
880,119 1,008,125
------------ ------------
Entertainment Distribution -- 2.1%
6,000 AMC Entertainment Inc.+ ......... 91,999 51,750
230,000 Blockbuster Inc., Cl. A+ ........ 3,230,238 3,076,250
39,500 GC Companies Inc.+ .............. 1,126,545 1,022,062
3,500 Liberty Digital Inc.+ ........... 48,998 259,875
5,000 Loews Cineplex
Entertainment+ ................ 68,750 29,375
19,500 Shaw Communications Inc., Cl. B 105,571 643,696
5,500 Shaw Communications Inc.,
Cl. B, (non-voting) ........... 103,451 182,187
------------ ------------
4,775,552 5,265,195
------------ ------------
Equipment -- 1.5%
35,000 Allen Telecom Inc.+ ............. 247,869 404,688
2,100 Amphenol Corp., Cl. A+ .......... 65,030 139,781
2,000 CommScope Inc.+ ................. 29,407 80,625
4,000 Gemstar International
Group Ltd.+ ................... 39,408 285,000
7,000 Hutchison Whampoa Ltd. .......... 71,267 101,756
920 Koninklijke Philips
Electronics N.V. .............. 33,672 124,200
2,500 L-3 Communications
Holdings Inc.+ ................ 55,000 104,062
4,000 Lucent Technologies Inc. ........ 120,100 299,250
4,000 Nortel Networks Corp. ........... 34,956 404,000
152,000 Oak Technology Inc.+ ............ 570,527 1,434,500
3,000 Scientific-Atlanta Inc. ......... 50,804 166,875
3,000 TiVo Inc.+ ...................... 48,000 101,250
------------ ------------
1,366,040 3,645,987
------------ ------------
International Telephone -- 8.9%
35,000 BCE Inc. ........................ 708,712 3,156,563
45,000 BCT.Telus
Communications Inc. ........... 810,821 1,095,774
20,000 BCT.Telus
Communications Inc., Cl. A .... 408,424 482,854
76,000 Cable & Wireless plc, ADR ....... 2,156,565 4,023,250
27,000 Compania de
Telecomunicaciones
de Chile SA, ADR .............. 490,841 492,750
2,000 Deutsche Telekom
AG, ADR+ ...................... 37,780 142,000
10,000 Embratel Participacoes SA+ ...... 210,605 272,500
1,000 France Telecom SA, ADR .......... 34,488 133,500
25,000 GST Telecommunications Inc.+ .... 262,169 226,563
90 Japan Telecom Co. Ltd. .......... 992,218 3,611,628
500 Magyar Tavkozlesi Rt,
Sponsored ADS ................. 9,650 18,000
10 Nippon Telegraph &
Telephone Corp. ............... 81,575 171,283
20,000 Philippine Long Distance
Telephone Co., ADR ............ 494,291 517,500
7,000 PT Indonesia Satellite, ADR ..... 84,423 151,375
4,320 PT Telekomunikasi
Indonesia, ADR ................ 18,513 47,520
6,000 Quebec-Telephone ................ 44,083 59,231
4,000 Rostelecom, ADR ................. 29,778 67,500
1,000 Sonera Group Oyj ................ 23,506 68,543
20,000 Swisscom AG, ADR ................ 679,969 810,000
3,300 Tele Centro Sul
Participacoes SA, ADR ......... 191,758 299,475
16,500 Tele Norte Leste
Participacoes SA, ADR ......... 252,380 420,750
3,000 Telecom Argentina Stet
France Telecom SA, ADR ........ 54,442 102,750
1,000 Telecom Corp. of
New Zealand Ltd., ADR ......... 29,688 38,500
16,500 Telecomunicacoes
Brasileiras SA
(Telebras), ADR ............... 1,268 258
3,000 Telefonica de Argentina SA,
Cl. B, ADR .................... 64,387 92,625
42,000 Telefonica de Espana
SA, ADR ....................... 653,166 3,310,125
210,000 Telefonica del Peru, Cl. B ...... 430,392 273,536
500 Telefonica del Peru, ADR ........ 6,494 6,688
12,000 Telefonos de Mexico SA,
Cl. L, ADR .................... 378,945 1,350,000
16,500 Telesp Participacoes
SA, ADR ....................... 618,902 403,219
2,400 Telestra Corp. Ltd., ADR ........ 30,324 65,400
------------ ------------
10,290,557 21,911,660
------------ ------------
Satellite -- 2.3%
300 Asia Satellite
Telecommunications
Holdings Ltd., ADR ............ 5,693 10,500
10,000 COMSAT Corp. .................... 259,826 198,750
15,000 EchoStar Communications
Corp., Cl. A+ ................. 98,889 1,462,500
10,000 General Motors Corp., Cl. H+ .... 497,526 960,000
4,000 Globalstar
Telecommunications Ltd.+ ...... 13,663 176,000
15,008 Loral Space &
Communications Ltd.+ .......... 217,918 364,882
18,000 Pegasus Communications
Corp.+ ........................ 366,811 1,759,500
45,000 TCI Satellite Entertainment
Inc., Cl. A+ .................. 382,696 720,000
------------ ------------
1,843,022 5,652,132
------------ ------------
Telecommunications -- 3.8%
8,745 Aliant Inc.+ .................... 79,253 151,455
2,000 Allegiance Telecom Inc.+ ........ 28,500 184,500
3,000 Alltel Corp. .................... 126,385 248,063
5,000 Broadwing Inc.+ ................. 53,743 184,375
22,500 CoreComm Ltd.+ .................. 152,100 1,335,938
5,000 Eircom plc ...................... 21,813 21,404
10,000 Electric Lightwave Inc., Cl. A+ 91,165 187,500
9,000 Global Crossing Ltd.+ ........... 120,866 450,000
3,000 Global Telesystems
Group Inc.+ ................... 8,705 103,875
1,305 Hellenic Telecommunication
Organization SA ............... 18,163 30,903
1,000 Jazztel plc, ADR+ ............... 17,447 65,125
10,000 Metromedia International
Group Inc.+ ................... 83,550 47,500
39,000 RCN Corp.+ ...................... 342,091 1,891,500
9,655 Rogers Communications
Inc., Cl. B+ .................. 148,207 236,108

See accompanying notes to financial statements.

14
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999

Market
Shares Cost Value
------ ---- -----
COMMON STOCKS (Continued)
DISTRIBUTION COMPANIES (Continued)
Telecommunications (Continued)
160,345 Rogers Communications
Inc., Cl. B, ADR+ ............. $ 1,366,688 $ 3,968,539
6,500 Time Warner Telecom
Inc., Cl. A+ .................. 91,000 324,594
3,000 USN Communications Inc.+ ........ 12,165 3
------------ ------------
2,761,841 9,431,382
------------ ------------
Telecommunications - Long Distance -- 1.5%
25,000 AT&T Corp. ...................... 703,418 1,268,750
8,250 MCI Worldcom Inc.+ .............. 159,077 437,766
12,000 Sprint Corp. .................... 129,824 807,750
3,000 STARTEC Global
Communications Corp.+ ......... 28,646 64,125
22,000 Viatel Inc.+ .................... 228,733 1,179,750
------------ ------------
1,249,698 3,758,141
------------ ------------
U.S. Regional Operators -- 2.2%
85,000 Citizens Utilities Co., Cl. B+ .. 847,741 1,205,938
24,434 Commonwealth Telephone
Enterprises Inc.+ ............. 528,513 1,291,948
24,400 Commonwealth Telephone
Enterprises Inc., Cl. B+ ...... 318,107 1,543,300
11,000 GTE Corp. ....................... 377,300 776,188
5,000 SBC Communications Inc. ......... 112,521 243,750
5,000 US West Inc. .................... 296,344 360,000
------------ ------------
2,480,526 5,421,124
------------ ------------
Wireless Communications -- 18.6%
75,000 Aerial Communications Inc.+ ..... 492,648 4,565,625
3,000 Cable & Wireless
Communications
plc, ADR ...................... 62,688 210,000
37,000 CenturyTel Inc. ................. 500,752 1,752,875
75,000 CommNet Cellular Inc.+ .......... 2,113,901 2,409,375
22,000 Iridium World
Communications
Ltd., Cl. A+ .................. 48,814 53,625
15,500 Leap Wireless
International Inc.+ ........... 131,154 1,216,750
5,000 Libertel NV+ .................... 94,590 130,943
8,447 NEXTEL Communications
Inc., Cl. A+ .................. 94,069 871,097
100 NTT Mobile
Communications
Network Inc. .................. 762,806 3,846,530
25,000 Omnipoint Corp.+ ................ 284,983 3,015,625
18,000 Price Communications Corp.+ ..... 79,176 500,625
8,000 Qualcomm Inc.+ .................. 41,625 1,409,000
93,000 Rogers Cantel Mobile
Communications Inc., Cl. B+ ... 1,108,585 3,382,875
14,000 Rural Cellular Corp., Cl. A+ .... 154,913 1,267,000
39,840 SK Telecom Co. Ltd., ADR380,367 1,528,875
3,500 Sprint Corp. (PCS Group)+ ....... 19,162 358,750
1,650 Tele Celular Sul
Participacoes SA, ADR ......... 26,379 52,388
5,500 Tele Centro Oeste Celular
Participacoes SA, ADR ......... 16,487 35,750
330 Tele Leste Celular
Participacoes SA, ADR ......... 8,827 14,025
825 Tele Nordeste Celular
Participacoes SA, ADR ......... 12,175 41,663
330 Tele Norte Celular
Participacoes SA, ADR ......... 5,098 14,169
3,300 Tele Sudeste Celular
Participacoes SA, ADR+ ........ 104,503 128,081
380,000 Telecom Italia
Mobile SpA+ ................... 861,292 4,244,754
825 Telemig Celular
Participacoes SA, ADR+ ........ 23,843 38,105
85,000 Telephone & Data
Systems Inc. .................. 3,653,968 10,710,000
6,600 Telesp Celular
Participacoes SA, ADR+ ........ 211,036 279,675
6,000 Teligent Inc., Cl. A ............ 136,200 370,500
18,000 Total Access
Communications plc+ ........... 113,625 70,920
9,000 U.S. Cellular Corp.+ ............ 277,869 908,438
3,500 Vimpel-Communications, ADR+ ..... 66,238 156,188
23,000 Vodafone AirTouch plc, ADR ...... 513,762 1,138,500
2,000 Western Wireless Corp., Cl. A+ .. 19,810 133,500
12,000 WinStar Communications Inc.+ .... 245,848 903,000
------------ ------------
12,667,193 45,759,226
------------ ------------
TOTAL DISTRIBUTION COMPANIES .................... 63,202,746 150,621,540
------------ ------------
TOTAL COMMON STOCKS ............................. 102,804,919 240,469,499
------------ ------------
PREFERRED STOCKS -- 1.8%
Consumer Services -- 0.1%
6,000 Cendant Corp.,
1.30% Cv. Pfd. ................ 152,738 203,625
------------ ------------
Global Media and Entertainment -- 0.8%
62,765 News Corp. Ltd., Pfd., ADR ...... 986,187 2,098,705
------------ ------------
U.S. Regional Operators -- 0.9%
40,000 Citizens Utilities Co.,
5.00% Cv. Pfd. ................ 1,914,412 2,255,000
------------ ------------
TOTAL PREFERRED STOCKS .......................... 3,053,337 4,557,330
------------ ------------
COMMON STOCK WARRANTS AND RIGHTS -- 0.0%
200 Havas Advertising,
Warrants, expires 05/13/01 .... 0 2,327
600 Talk.com Inc., Rights,
expires 02/12/00 .............. 0 0
------------ ------------
TOTAL COMMON STOCK
WARRANTS AND RIGHTS ........................... 0 2,327
------------ ------------

Principal
Amount
---------
CORPORATE BONDS -- 0.1%
Business Services -- 0.1%
$250,000 Trans-Lux Corp., Sub. Deb. Cv.
7.50%, 12/01/06 ............... 238,684 214,062
------------ ------------
Computer Software and Services -- 0.0%
50,000 BBN Corp., Sub. Deb. Cv.
6.00%, 04/01/12 (b) ........... 49,391 48,375
------------ ------------

See accompanying notes to financial statements.

15
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (Continued)
December 31, 1999

Principal Market
Amount Cost Value
--------- ---- -------
CORPORATE BONDS (Continued)
Global Media and Entertainment -- 0.0%
$ 20,000 Boston Celtics Ltd., Deb.
6.00%, 06/30/38 ............... $ 12,081 $ 10,800
------------ ------------
Publishing -- 0.0%
100,000 Golden Books Publishing
Company Inc.
Zero Coupon, 09/15/02 ......... 49,810 41,500
------------ ------------
TOTAL CORPORATE BONDS ........................... 349,966 314,737
------------ ------------

U.S. GOVERNMENT OBLIGATIONS -- 2.9%
7,163,000 U.S. Treasury Bills,
5.02% to 5.43%++,
due 01/27/00 to 03/30/00 ...... 7,112,476 7,113,247
------------ ------------

TOTAL INVESTMENTS -- 102.4% ..................... $113,320,698 (a) 252,457,140
============ ------------

OTHER ASSETS, LIABILITIES AND
LIQUIDATION VALUE OF CUMULATIVE
PREFERRED STOCK-- (15.1)% ..................... (37,219,173)
------------

NET ASSETS -- COMMON STOCK
(10,813,315 common shares outstanding) -- 87.3% 215,237,967
------------

NET ASSETS -- CUMULATIVE
PREFERRED STOCK
(1,250,000 preferred shares outstanding)-- 12.7% 31,250,000
------------

TOTAL NET ASSETS-- 100.0% ....................... $246,487,967
============

NET ASSET VALUE PER COMMON SHARE
($215,237,967 / 10,813,315 shares outstanding) $19.90
======

Common Market
Stocks Shares Proceeds Value
------ ------ -------- -----
SECURITIES SOLD SHORT
Voicestream Wireless
Corp., Cl. A 13,000 $ (1,744,754) $ (1,850,062)
============ ============

SCHEDULE OF FORWARD FOREIGN EXCHANGE CONTRACTS

Settlement Unrealized
Date Depreciation
---------- ------------
Forward Foreign Exchange Contracts to Deliver
3,592,510 (c) Hong Kong Dollars
in exchange for
USD $456,076 ............... 08/24/00 ($4,822)
=======

- --------------------
(a) For Federal tax purposes:
Aggregate cost $113,684,312
============
Gross unrealized appreciation $141,445,471
Gross unrealized depreciation (2,672,643)
------------
Net unrealized appreciation $138,772,828
============

(b) Security fair valued as determined by the Board of Directors.
(c) Principal denominated in Hong Kong dollars.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR - American Depositary Receipt
ADS - American Depositary Shares
USD - United States Dollar
ORD - Ordinary Share
GDR - Global Depositary Receipt

% of
Market Market
Value Value
-------- -------
Geographic Diversification
United States 72.1% $182,095,417
Europe 10.6 26,646,408
Asia/Pacific Rim 7.8 19,701,161
Canada 6.5 16,393,249
Latin America 3.0 7,620,905
----- ------------
Total Investments 100.0% $252,457,140
===== ============

See accompanying notes to financial statements.

16
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.

STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999

Assets:
Investments, at value (Cost $113,320,698) ................. $252,457,140
Foreign currency, at value (Cost $356,314) ................ 362,440
Dividends and interest receivable ......................... 150,277
Receivable for investments sold ........................... 3,074,568
------------
Total Assets ............................................ 256,044,425
------------
Liabilities:
Dividends payable ......................................... 7,264,737
Payable for securities sold short,
at value (proceeds $1,744,754) ......................... 1,850,062
Payable for investment advisory fees ...................... 199,615
Payable to custodian ...................................... 223,531
Unrealized depreciation on forward
foreign exchange contracts ............................. 4,822
Accrued expenses and other payables ....................... 13,691
------------
Total Liabilities ....................................... 9,556,458
------------
Net Assets .............................................. $246,487,967
============
Net Assets consist of:
Cumulative Preferred Stock (7.92%, $25
liquidation value, $0.001 par value,
2,000,000 shares authorized with
1,250,000 shares issued and outstanding) ............... $ 31,250,000
Capital stock, at par value ............................... 10,813
Additional paid-in capital ................................ 75,793,074
Accumulated net realized gain on
investments, futures contracts and
foreign currency transactions .......................... 400,534
Net unrealized appreciation on investments
and foreign currency transactions ...................... 139,033,546
------------
Total Net Assets .......................................... $246,487,967
============
Net Asset Value per Common Share
($215,237,967 / 10,813,315 shares issued
and outstanding; 200,000,000 shares
authorized of $0.001 par value) ........................ $19.90
======

STATEMENT OF OPERATIONS
For the Year Ended December 31, 1999

Investment Income:
Dividends (net of foreign withholding
taxes of $27,363) .................................... $ 1,177,258
Interest ................................................ 1,044,738
------------
Total Investment Income ............................... 2,221,996
------------
Expenses:
Investment advisory fees ................................ 2,073,889
Shareholder services fees ............................... 184,841
Shareholder communications expenses ..................... 153,390
Legal and audit fees .................................... 104,081
Amortization of organization costs ...................... 61,070
Director's fees ......................................... 60,702
Payroll ................................................. 60,000
Custodian fees .......................................... 54,952
------------
Total Expenses .......................................... 2,752,925
------------
Net Investment Loss ..................................... (530,929)
------------
Net Realized and Unrealized Gain/(Loss) on
Investments and Foreign Currency Transactions:
Net realized gain on investments ........................ 42,849,782
Net realized loss on futures contracts .................. (55,829)
Net realized loss on foreign currency transactions ...... (15,996)
------------
Net realized gain on investments, futures contracts
and foreign currency transactions .................... 42,777,957
------------
Net change in net unrealized appreciation on
investments and foreign currency transactions ........ 82,599,526
------------
Net Realized and Unrealized Gain on
Investments and Foreign
Currency Transactions ................................ 125,377,483
------------
Net Increase in Net Assets
Resulting from Operations ............................ $124,846,554
============

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
Year Ended Year Ended
December 31, 1999 December 31, 1998
----------------- -----------------
<S> <C> <C>
Operations:
Net investment loss ............................................................... $ (530,929) $ (381,417)
Net realized gain on investments, futures contracts and foreign
currency transactions ........................................................... 42,777,957 11,439,702
Net change in unrealized appreciation on investments and foreign
currency transactions ........................................................... 82,599,526 24,982,337
------------ ------------
Net increase in net assets resulting from operations ........................... 124,846,554 36,040,622
------------ ------------
Distributions to common stock shareholders:
Net realized gain on investment transactions, futures contracts and
foreign currency transactions ................................................... (39,124,967) (8,750,516)
------------ ------------
Total distributions to common stock shareholders ............................... (39,124,967) (8,750,516)
------------ ------------
Distributions to preferred stock shareholders:
Net realized gain on investment transactions, future contracts and
foreign currency transactions ................................................... (2,475,000) (2,475,000)
------------ ------------
Total distributions to preferred stock shareholders ............................ (2,475,000) (2,475,000)
------------ ------------
Net decrease in net assets from Multimedia Trust share transactions ................... (501,046) (1,488,747)
------------ ------------
Net increase in net assets ..................................................... 82,745,541 23,326,359
Net Assets:
Beginning of period ............................................................... 163,742,426 140,416,067
------------ ------------
End of period ..................................................................... $246,487,967 $163,742,426
============ ============
</TABLE>

See accompanying notes to financial statements.

17
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS

1. Organization. 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. Investment operations commenced on
November 15, 1994. 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").

2. Significant Accounting Policies. 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 listed or traded on a nationally
recognized securities exchange, quoted by the National Association of Securities
Dealers Automated Quotations, Inc. ("Nasdaq") or traded on foreign exchanges are
valued at the last sale price on that exchange as of the close of business on
the day the securities are being valued (if there were no sales that day, the
security is valued at the average of closing bid and asked prices or, if there
were no asked prices quoted on that day, then the security is valued at the
closing bid price on that day). All other portfolio securities for which
over-the-counter market quotations are readily available are valued at the
latest average of the bid and asked prices. Portfolio securities traded on more
than one national securities exchange or market are valued according to the
broadest and most representative market, as determined by Gabelli Funds, LLC
(the "Adviser"). Securities and assets for which market quotations are not
readily available are valued at their fair value as determined in good faith
under procedures established by and under the general supervision of the Board
of Directors. Short term debt securities with remaining maturities of 60 days or
less are valued at amortized cost, unless the Directors determine such does not
reflect the securities' fair value, in which case these securities will be
valued at their fair value as determined by the Directors. Debt instruments
having a greater maturity are valued at the highest bid price obtained from a
dealer maintaining an active market in those securities.

Repurchase Agreements. The Multimedia Trust may enter into repurchase
agreements with primary government securities dealers recognized by the Federal
Reserve Board, with member banks of the Federal Reserve System or with other
brokers or dealers that meet credit guidelines established by the Directors.
Under the terms of a typical repurchase agreement, the Multimedia Trust takes
possession of an underlying debt obligation subject to an obligation of the
seller to repurchase, and the Multimedia Trust to resell, the obligation at an
agreed-upon price and time, thereby determining the yield during the Multimedia
Trust's holding period. The Multimedia Trust will always receive and maintain
securities as collateral whose market value, including accrued interest, will be
at least equal to 100% of the dollar amount invested by the Multimedia Trust in
each agreement. The Multimedia Trust will make payment for such securities only
upon physical delivery or upon evidence of book entry transfer of the collateral
to the account of the custodian. To the extent that any repurchase transaction
exceeds one business day, the value of the collateral is marked-to-market on a
daily basis to maintain the adequacy of the collateral. If the seller defaults
and the value of the collateral declines or if bankruptcy proceedings are
commenced with respect to the seller of the security, realization of the
collateral by the Multimedia Trust may be delayed or limited.

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
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.

Securities Sold Short. A short sale involves selling a security which the
Fund does not own. The proceeds received for short sales are recorded as
liabilities and the Fund records an unrealized gain or loss to the extent of the
difference between the proceeds received and the value of the open short
position on the day of determination. The Fund records a realized gain

18
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (Continued)

or loss when the short position is closed out. By entering into a short sale,
the Fund bears the market risk of an unfavorable change in the price of the
security sold short. Dividends on short sales are recorded as an expense by the
Fund on the ex-dividend date and interest expense is recorded on the accrual
basis.

Forward Foreign Exchange Contracts. The Multimedia Trust may engage in
forward foreign currency exchange contracts in an effort to reduce the level of
volatility caused by changes in foreign currency exchange rates. The Multimedia
Trust may use forward foreign exchange contracts to facilitate transactions in
foreign securities and to manage Multimedia Trust's currency exposure. Forward
foreign exchange contracts are valued at the forward exchange rate and are
marked-to-market daily. The change in market value is included in unrealized
appreciation/depreciation on investments and foreign currency transactions. When
the contract is closed, the Multimedia Trust records a realized gain or loss
equal to the difference between the value of the contract at the time it was
opened and the value at the time it was closed.

The use of forward foreign exchange contracts does not eliminate
fluctuations in the underlying prices of the Multimedia Trust's securities, but
it does establish a rate of exchange that can be achieved in the future.
Although forward foreign exchange contracts limit the risk of loss due to a
decline in the value of the hedged currency, they also limit any potential gain
that might result should the value of the currency increase. In addition, the
Multimedia Trust could be exposed to risks if the counterparties to the
contracts are unable to meet the terms of their contracts.

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 on investments. Unrealized gains and losses
on 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 on investments and foreign currency transactions. 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 on the trade date with realized gain or loss on investments
determined by using the identified cost method. Interest income (including
amortization of premium and accretion of discount) is recorded as earned.
Dividend income is recorded on the ex-dividend date.

Dividends and Distributions to Shareholders. Dividends 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, timing
differences and differing characterizations of distributions made by the
Multimedia Trust. Distributions to shareholders of 7.92% Cumulative Preferred
Stock ("Preferred Stock") are accrued on a daily basis and are determined as
described in note 5.

For the year ended December 31, 1999, reclassifications were made to
increase undistributed net investment loss for $518,685 with an offsetting
adjustment to accumulated net realized gain on investments, futures contracts
and foreign currency transactions.

Provision for Income Taxes. The Multimedia Trust 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.

Dividends and interest from non-U.S. sources received by the Multimedia
Trust are generally subject to non-U.S. withholding taxes at rates ranging up to
30%. Such withholding taxes may be reduced or eliminated under the terms of
applicable U.S. income tax treaties, and the Multimedia Trust intends to
undertake any procedural steps required to claim the benefits of such treaties.
If the value of more than 50% of the Multimedia Trust's total net assets at the
close of any taxable year consists of stocks or securities of non-U.S.
corporations, the Multimedia Trust is permitted and may elect to treat any
non-U.S. taxes paid by it as paid by its shareholders.

3. 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 on the
first

19
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
NOTES TO FINANCIAL STATEMENTS (Continued)

business day of each month a fee for the previous month at the annual rate of
1.00% 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. The Adviser has
agreed to reduce the management fee on the incremental assets attributable to
the Preferred Stock if the total return of the net asset value of the common
shares of the Multimedia Trust, including distributions and advisory fee subject
to reduction, does not exceed the stated dividend rate of the Preferred Stock.
For the year ended December 31, 1999, total return of the net asset value of the
common shares of the Multimedia Trust exceeded the stated dividend rate of the
Preferred Stock and thus, such management fees were earned.

During the year ended December 31, 1999, Gabelli & Company, Inc. ("Gabelli
& Company") and its affiliates received $83,090 in brokerage commissions as a
result of executing agency transactions in portfolio securities on behalf of the
Multimedia Trust.

4. Portfolio Securities. Purchases and sales of securities, other than
short-term securities, aggregated $82,207,410 and $125,507,821, respectively,
for the year ended December 31, 1999.

5. Capital. The Board of Directors of the Multimedia Trust has authorized the
repurchase of up to 1,000,000 shares of the Multimedia Trust's outstanding
common stock. For the year ended December 31, 1999, the Multimedia Trust
repurchased 42,400 shares of its common stock in the open market at a cost of
$501,046 and an average discount of approximately 15.84% from its net asset
value. During the fiscal year ended December 31, 1998, the Fund repurchased
156,700 shares of its common stock in the open market at a cost of $1,488,747
and an average discount of approximately 12.85% from its net asset value. All
shares repurchased have been retired.

Common stock transactions were as follows:

<TABLE>
<CAPTION>
Year Ended Year Ended
12/31/1999 12/31/1998
------------------------- ---------------------------
Shares Amount Shares Amount
------- ---------- -------- -----------
<S> <C> <C> <C> <C>
Shares repurchased by the Multimedia Trust (42,400) $ (501,046) (156,700) $(1,488,747)
------- ---------- -------- -----------
Net decrease (42,400) $ (501,046) (156,700) $(1,488,747)
------- ---------- -------- -----------
</TABLE>

The Multimedia Trust's Articles of Incorporation authorize the issuance of
up to 2,000,000 shares of $0.001 par value preferred stock. The Preferred Stock
is senior to the common stock and results in the financial leveraging of the
common stock. Such leveraging tends to magnify both the risks and opportunities
to Common Shareholders. Dividends on shares of the Preferred Stock are
cumulative. The Multimedia Trust is required to meet certain asset coverage
tests with respect to the Preferred Stock. If the Multimedia Trust fails to meet
these requirements and does not correct such failure, the Multimedia Trust may
be required to redeem, in part or in full, the Preferred Stock at a redemption
price of $25.00 per share plus an amount equal to the accumulated and unpaid
dividends whether or not declared on such shares in order to meet these
requirements. Additionally, failure to meet the foregoing asset requirements
could restrict the Multimedia Trust's ability to pay dividends to Common
Shareholders and could lead to sales of portfolio securities at inopportune
times. Commencing June 1, 2002 and thereafter, the Multimedia Trust, at its
option, may redeem the Preferred Stock in whole or in part at the redemption
price. At December 31, 1999, 1,250,000 shares of the Preferred Stock were
outstanding at the fixed dividend rate of 7.92 percent per share and accrued
dividends amounted to $34,375. The income received on the Multimedia Trust's
assets may vary in a manner unrelated to the fixed rate, which could have either
a beneficial or detrimental impact on net investment income and gains available
to Common Shareholders.

The holders of Preferred Stock have voting rights equivalent to those of
the holders of common stock (one vote per share) and will vote together with
holders of shares of common stock as a single class. In addition, the 1940 Act,
requires that along with approval of the holders of a majority of any
outstanding shares of Preferred Stock, voting separately as a class would be
required to (a) adopt any plan of reorganization that would adversely affect the
Preferred Stock, and (b) take any action requiring a vote of security holders,
including, among other things, changes in the Trust's subclassification as a
closed-end investment company or changes in its fundamental investment
restrictions.

6. Industry Concentration. Because the Multimedia Trust primarily invests in
common stocks 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.

20
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
FINANCIAL HIGHLIGHTS

Selected data for a share of capital stock outstanding throughout each period.

<TABLE>
<CAPTION>
Period Ended December 31,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Operating Performance:
Net asset value, beginning of period ............ $ 12.20 $ 9.91 $ 8.10 $ 7.81 $ 7.51
-------- -------- -------- -------- --------
Net investment income / (loss) .................. (0.05) (0.03) 0.01 0.01 0.08
Net realized and unrealized gain on investments . 11.54 3.33 2.85 0.63 0.98
-------- -------- -------- -------- --------
Total from investment operations ................ 11.49 3.30 2.86 0.64 1.06
-------- -------- -------- -------- --------
Increase / (decrease) in net asset value from
share transactions ........................... 0.06 0.02 0.06 0.02 (0.46)
Offering expenses charged to capital surplus .... -- -- (0.13) -- (0.05)
Distributions to common stock shareholders:
Net investment income ........................... -- -- (0.01) (0.01) (0.08)
Net realized gains .............................. (3.62) (0.80) (0.84) (0.36) (0.17)
Distributions in excess of net investment income
and/or net realized gains .................... -- -- (0.00)(a) (0.00)(a) (0.00)
Distributions to preferred stock shareholders:
Net investment income ........................... -- -- (0.00)(a) -- --
Net realized gains .............................. (0.23) (0.23) (0.13) -- --
-------- -------- -------- -------- --------
Total distributions ............................. (3.85) (1.03) (0.98) (0.37) (0.25)
-------- -------- -------- -------- --------
Net asset value, end of period .................. $ 19.90 $ 12.20 $ 9.91 $ 8.10 $ 7.81
======== ======== ======== ======== ========
Market value, end of period ..................... $ 18.750 $ 10.938 $ 8.750 $ 6.875 $ 6.760
======== ======== ======== ======== ========
Net Asset Value Total Return+ ................... 96.6% 33.0% 34.4% 9.4% 14.1%
======== ======== ======== ======== ========
Total Investment Return+ ........................ 106.6% 35.1% 39.6% 7.4% 0.4%
======== ======== ======== ======== ========
Ratios to average net assets available to common
stock shareholders/supplemental data:
Net assets, end of period (in 000's) ............ $246,488 $163,742 $140,416 $ 91,462 $ 89,580
Net assets attributable to common shares,
end of period (in 000's) ..................... $215,238 $132,492 $109,166 $ 91,462 $ 89,580
Ratio of net investment income / (loss) to
average net assets ........................... (0.30)% (0.32)% 0.07% 0.13% 1.24%++
Ratio of operating expenses to average net assets
attributable to common stock ................. 1.56% 2.53% 2.09% 1.87% 2.04%++
Ratio of operating expenses to average
total net assets ............................. 1.32% 2.01% 1.77% 1.87% --
Portfolio turnover rate ......................... 43.1% 44.6% 96.1% 32.1% 86.0%
Preferred Stock:
Liquidation value, end of period (in 000's) ..... $ 31,250 $ 31,250 $ 31,250 -- --
Total shares outstanding (in 000's) ............. 1,250 1,250 1,250 -- --
Asset coverage .................................. 789% 524% 443% -- --
Liquidation preference per share ................ $ 25.00 $ 25.00 $ 25.00 -- --
Average market value (b) ........................ $ 25.13 $ 25.96 $ 25.59 -- --
</TABLE>

- ----------
+ Total return represents aggregate total return of a hypothetical $1,000
investment at the beginning of the period and sold at the end of the
period including reinvestment of dividends.
++ Annualized.
(a) Amount represents less than $0.005 per share.
(b) Based on weekly prices.

See accompanying notes to financial statements.

21
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
REPORT OF INDEPENDENT ACCOUNTANTS

To the Board of Directors and Shareholders of
The Gabelli Global Multimedia Trust Inc.

In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Gabelli Global Multimedia Trust
Inc. (the "Multimedia Trust") at December 31, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended and the financial highlights for each of
the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States. These financial statements
and financial highlights (hereafter referred to as "financial statements") are
the responsibility of the Multimedia Trust's management; our responsibility is
to express an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with auditing
standards generally accepted in the United States, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 1999 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.

PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York
February 11, 2000

22
<PAGE>

THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
INCOME TAX INFORMATION (Unaudited)
December 31, 1999

Cash Dividends and Distributions

<TABLE>
<CAPTION>
Total Amount Ordinary Non-taxable Long-Term Dividend
Payable Record Paid Investment Return of Capital Reinvestment
Date Date Per Share Income Capital Gains Price
-------- -------- ------------ ---------- ----------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Common Shares
09/27/99 09/17/99 $0.5000 -- -- $0.5000 $15.3158
12/27/99 12/17/99 3.1200 $1.2834 -- 1.8366 18.6724
------- ------- -------
$3.6200 $1.2834 -- $2.3366

Preferred Shares
03/29/99 03/22/99 $0.4950 $0.1755 -- $0.3195
06/28/99 06/21/99 0.4950 0.1755 -- 0.3195
09/27/99 09/20/99 0.4950 0.1755 -- 0.3195
12/27/99 12/20/99 0.4950 0.1755 -- 0.3195
-------- -------- ------- ------- ---------
$1.9800 $0.7020 $1.2780
</TABLE>

A Form 1099-DIV has been mailed to all shareholders of record for the
distributions mentioned above, setting forth specific amounts to be included in
the 1999 tax returns. Ordinary income distributions include net investment
income and realized net short-term capital gains. 100% of the long-term capital
gains paid by the Multimedia Trust in 1999 was classified as "20% Rate Gains"
subject to a maximum tax rate of 20% (or 10% depending on an individual's tax
bracket). Capital gain distributions are reported in box 2a of Form 1099-DIV.

Non-Taxable Return of Capital

The amount received as a non-taxable (return of capital) distribution
should be applied to reduce the tax cost of shares. There is no return of
capital in 1999.

Corporate Dividends Received Deduction and U.S. Treasury Securities Income

The Multimedia Trust paid to common and preferred shareholders an ordinary
income dividend of $1.2834 per share and $0.7020 per share, respectively, in
1999. The percentage of such dividends that qualifies for the dividends received
deduction available to corporations is 4.66% for all such dividends paid in
1999. The percentage of the ordinary income dividends paid by the Multimedia
Trust during 1999 derived from U.S. Treasury Securities was 4.80%. However, it
should be noted that the Multimedia Trust did not hold more than 50% of its
assets in U.S. Treasury Securities at the end of each calendar quarter during
1999.

Historical Distribution Summary - Common Stock

<TABLE>
<CAPTION>
Short- Long-
term term Non-taxable Adjustment
Annual Investment Capital Capital Return of Total to
Summary Income Gains(b) Gains Capital Distributions Cost Basis
------- ---------- -------- ------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
1999 ............. -- $1.2834 $2.3366 -- $3.6200 --
1998 ............. -- 0.1995 0.6005 -- 0.8000 --
1997 ............. $0.0058 0.2682 0.5760 -- 0.8500 --
1996 ............. 0.0103 0.0790 0.2857 -- 0.3750 --
1995 (a) ......... 0.0788 0.1529 0.0183 -- 0.2500 --
1994 ............. 0.0305 0.0010 0.0014 $0.0171 0.0500 $0.0171-
</TABLE>

Historical Distribution Summary - Preferred Stock

- ----------
(a) On August 11, 1995, the company distributed Rights equivalent to $0.46 per
share based upon full subscription of all issued shares.
(b) Taxable as ordinary income.
- - Decrease in cost basis.

23
<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 Inc.
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 NYSE trading day, the next trading day. If the net 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 NYSE 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 1st
and 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 investment date. Funds not received at least
five days before the investment date shall be held for investment until the next
purchase date. 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.

- --------------------------------------------------------------------------------
The Annual Meeting of the Multimedia Trust's stockholders will be held at 10:00
A.M. on Monday, May 15, 2000, at the Greenwich Public Library, 101 West Putnam
Avenue in Greenwich, Connecticut.
- --------------------------------------------------------------------------------

24
<PAGE>

DIRECTORS AND OFFICERS

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

Directors

Mario J. Gabelli, CFA
Chairman and Chief Investment Officer,
Gabelli Asset Management Inc.

Dr. Thomas E. Bratter
President, John Dewey Academy

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

James P. Conn
Former Managing Director and Chief Investment Officer,
Financial Security Assurance Holdings Ltd.

Frank J. Fahrenkopf, Jr.
President and Chief Executive Officer,
American Gaming Association

Karl Otto Pohl
Former President, Deutsche Bundesbank

Anthony R. Pustorino
Certified Public Accountant
Professor, Pace University

Werner J. Roeder, MD
Medical Director, Lawrence Hospital

Salvatore J. Zizza
Chairman, The Bethlehem Corp.

Officers

Mario J. Gabelli, CFA
President & Chief Investment Officer

Bruce N. Alpert
Vice President & Treasurer

Peter W. Latartara
Vice President

James E. McKee
Secretary

Investment Advisor

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

Custodian

State Street Bank and Trust Company

Counsel

Willkie Farr & Gallagher

Transfer Agent and Registrar

State Street Bank and Trust Company

Stock Exchange Listing

Common 7.92% Preferred
------ ---------------
NYSE-Symbol: GGT GGT Pr
Shares Outstanding: 10,813,315 1,250,000

The Net Asset Value appears in the Publicly Traded Funds column, under the
heading "Specialized Equity Funds," in Sunday'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, visit Gabelli Funds' Internet homepage
at: http://www.gabelli.com or e-mail us at: [email protected]
- --------------------------------------------------------------------------------

- --------------------------------------------------------------------------------
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. The Multimedia Trust may also, from time to time, purchase shares
of its Cumulative Preferred Stock in the open market when the shares are trading
at a discount to the Liquidation Value of $25.00.
- --------------------------------------------------------------------------------
<PAGE>

[GRAPHIC OMITTED]

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

Phone: 1-800-GABELLI (1-800-422-3554)
Fax: 1-914-921-5118 Internet: www.gabelli.com
e-mail: [email protected]

GBFMT-AR-99