<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>globalmultimedia.txt
<DESCRIPTION>GLOBALMULTIMEDIA
<TEXT>
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GLOBAL MULTIMEDIA
TRUST INC.

ANNUAL REPORT
DECEMBER 31, 2001

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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.

                                [GRAPHIC OMITTED]
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   MORNINGSTAR RATED[TM] GABELLI GLOBAL MULTIMEDIA TRUST 4 STARS OVERALL AND 3
  STARS FOR THE THREE-YEAR PERIOD ENDED 12/31/01 AMONG 51 CLOSED-END DOMESTIC
EQUITY FUNDS. THE FUND WAS RATED 5 STARS FOR THE FIVE-YEAR PERIOD ENDED 12/31/01
                   AMONG 50 CLOSED-END DOMESTIC EQUITY FUNDS.

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 Trust 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 Trust will invest
in companies participating in emerging technological advances in interactive
services and products.

                    THIS REPORT IS PRINTED ON RECYCLED PAPER.

<PAGE>

TO OUR SHAREHOLDERS,

      Among the weakest  market  sectors in 2000,  multimedia  stocks  performed
better on a relative  basis in 2001,  with the Gabelli Global  Multimedia  Trust
(the  "Trust")  declining  in line with the broad  market  Standard & Poor's 500
Index.   Advertising-supported   media   companies   (broadcasters,    newspaper
publishers,  and cable networks)  suffered  through three dismal  quarters,  but
rallied strongly in the last three months of the year.

INVESTMENT PERFORMANCE

      For the fourth  quarter  ended  December 31,  2001,  the Trust's net asset
value ("NAV") rose 16.63%.  The Morgan Stanley  Capital  International  ("MSCI")
World Free Index of global equity markets,  the Lipper Global Fund Average,  and
the Nasdaq Composite Index rose 9.42%,  10.92%, and 30.13%,  respectively,  over
the same  period.  The MSCI  World Free  Index and  Nasdaq  Composite  Index are
unmanaged  indicators  of stock  market  performance,  while the Lipper  Average
reflects the average  performance  of open-end  mutual funds  classified in this
particular  category.  The Trust declined 13.34% during 2001 after adjusting for
the  reinvestment of the $0.06 per share in  distributions.  The MSCI World Free
Index,  Lipper Global Fund Average,  and Nasdaq Composite Index declined 15.91%,
17.37%, and 21.05%, respectively, over the same twelve-month period.

      For the  three-year  period ended  December 31,  2001,  the Trust's  total
return averaged 8.70% annually,  including  reinvestments of $5.255 per share in
distributions and an adjustment of $1.46 per share attributable to the intrinsic
value of the rights  distributed  during this period.  The MSCI World Free Index
and Nasdaq  Composite  Index had  average  annual  declines  of 2.82% and 3.83%,
respectively,  while the Lipper Global Fund Average had an average  annual total
return of 1.00% over the same three-year  period. For the five-year period ended
December 31, 2001, the Trust's total return averaged 18.09% annually,  including
reinvestments  of $6.905 per share in  distributions  and an adjustment of $1.46
per share  attributable  to the rights  offering,  versus  average  annual total
returns of 5.18%,  5.73%, and 8.60% for the MSCI World Free Index, Lipper Global
Fund Average, and Nasdaq Composite Index, respectively.

      Since inception on November 15, 1994 through  December 31, 2001, the Trust
had a cumulative  total return of 188.47%,  including  adjustments  of $9.50 per
share for distributions and rights offerings, which equates to an average annual
total return of 16.01%.

      The Trust's  common shares ended the fourth  quarter at $9.01 per share on
the New York Stock  Exchange,  a total return of 14.92% for the fourth  quarter.
The Trust's common shares  declined  12.13% during 2001 after  adjusting for all
distributions.

GLOBAL ALLOCATION

      The  accompanying  chart  presents  the  Multimedia  Trust's  holdings  by
geographic region as of December 31, 2001. The geographic allocation will change
based on current global market conditions.  Countries and/or regions represented
in the  chart  and  below  may or may  not be  included  in the  Trust's  future
portfolio.

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                    HOLDINGS BY GEOGRAPHIC REGION - 12/31/01

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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

United States     74.6%
Europe            10.8%
Asia/Pacific Rim   5.6%
Latin America      4.8%
Canada             4.2%

--------------------------------------------------------------------------------
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.  The information  pertaining
to Morningstar contained herein: (1) is proprietary to Morningstar;  (2) may not
be copied or distributed;  and (3) is not warranted to be accurate,  complete or
timely.   [copyright]2001   Morningstar,   Inc.  All  Rights  Reserved.  Neither
Morningstar nor its content  providers are responsible for any damages or losses
arising from any use of this information. Morningstar ratings reflect historical
risk adjusted  performance as of 12/31/01 and are subject to change every month.
For each fund  with at least a  three-year  history,  Morningstar  calculates  a
Morningstar  Rating[TM]  metric each month by subtracting the return on a 90-day
U.S. Treasury Bill from the fund's load-adjusted return for the same period, and
then  adjusting  this excess return for risk. The top 10% of funds in each broad
asset  class  receive 5 stars,  the next  22.5%  receive  4 stars,  the next 35%
receive 3 stars, the next 22.5% receive 2 stars and the next 10% receive 1 star.
The Overall  Morningstar Rating for a fund is derived from a weighted average of
the  performance  figures  associated with its three-,  five-,  and ten-year (if
applicable) Morningstar Rating metrics.

<PAGE>

EQUITY MIX

      The Multimedia  Trust's investment premise falls within the context of two
main investment  themes: 1) companies  involved in creativity,  as it relates to
the development of intellectual  property rights (copyrights);  and 2) companies
involved in  distribution,  as it relates to the  delivery of these  copyrights.
Additionally,   this   includes   the   broad   scope  of   communications   and
commerce-related services such as basic voice, data and the Internet.

      The accompanying chart depicts the equity mix of the  copyright/creativity
and distribution companies in the Trust's portfolio as of December 31, 2001.

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

                      HOLDINGS BY CLASSIFICATION - 12/31/01

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EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

Distribution               61.0%
Copyright/Creativity       39.0%


INVESTMENT RESULTS (a)
<TABLE>
<CAPTION>

                                                                                    Quarter
                                                                   -----------------------------------------
                                                                    1st         2nd         3rd         4th      Year
                                                                    ---         ---         ---         ---      ----
  <S>                                                             <C>         <C>          <C>        <C>        <C>
  2001:   Net Asset Value                                         $11.31      $12.28       $9.02      $10.52     $10.52
          Total Return                                             (6.8)%       8.6%      (26.6)%      16.6%     (13.3)%
--------------------------------------------------------------------------------------------------------------------------
  2000:   Net Asset Value                                         $20.82      $18.60      $16.03      $12.21     $12.21
          Total Return                                              5.1%       (3.2)%     (13.8)%     (14.0)%    (24.9)%
--------------------------------------------------------------------------------------------------------------------------
  1999:   Net Asset Value                                         $14.14      $16.79      $16.75      $19.90     $19.90
          Total Return                                             15.9%       18.7%        3.0%       38.7%      96.6%
--------------------------------------------------------------------------------------------------------------------------
  1998:   Net Asset Value                                         $11.62      $11.90      $10.11      $12.20     $12.20
          Total Return                                             17.3%        2.4%      (12.6)%      26.8%      33.0%
--------------------------------------------------------------------------------------------------------------------------
  1997:   Net Asset Value                                          $8.23       $9.28      $10.09       $9.91      $9.91
          Total Return                                              1.7%       12.8%        8.7%        7.7%      34.4%
--------------------------------------------------------------------------------------------------------------------------
  1996:   Net Asset Value                                          $8.17       $8.59       $8.49       $8.09      $8.09
          Total Return                                              4.6%        5.1%       (1.2)%       0.5%       9.2%
--------------------------------------------------------------------------------------------------------------------------
  1995:   Net Asset Value                                          $7.67       $7.94       $7.93       $7.81      $7.81
          Total Return                                              2.1%        3.5%        5.7%        2.1%      14.1%
--------------------------------------------------------------------------------------------------------------------------
  1994:   Net Asset Value                                           --          --          --         $7.51      $7.51
          Total Return                                              --          --          --          0.8%(c)    0.8%(c)
--------------------------------------------------------------------------------------------------------------------------

</TABLE>



                   Average Annual Returns - December 31, 2001
--------------------------------------------------------------------------------

                      Average Annual         Average Annual
                      NAV Return (a)      Investment Return (b)
                      -------------       ---------------------
   1 Year ............  (13.34)%                (12.13)%
   5 Year ............   18.09%                  18.27%
   Life of Fund (c) ..   16.01%                  12.50%

(a) Life of Fund return based on initial net asset value of $7.50. Total returns
and average annual returns reflect  changes in net asset value,  reinvestment of
distributions and adjustments for rights offerings,  and are net of expenses. Of
course, the returns noted represent past performance and do not guarantee future
results.  Investment  returns  and the  principal  value of an  investment  will
fluctuate.  When  shares  are sold  they may be worth  more or less  than  their
original cost.
(b) Life of Fund return based on initial offering price of $7.50.  Total returns
and average annual returns  reflect  changes in closing market values on the New
York Stock Exchange,  reinvestment of  distributions  and adjustments for rights
offerings.
(c) From commencement of investment operations on November 15, 1994.

                                        2
<PAGE>

--------------------------------------------------------------------------------
                   EARNINGS + INTEREST RATES + MR. MARKET = ?

BACK
TO
BASICS

[GRAPHIC OF BOOK ENTITLED "SECURITY ANALYSIS" OMITTED.]
1934
BENJAMIN GRAHAM             DAVID L. DODD

[GRAPHIC OF BOOK ENTITLED "THE INTELLIGENT INVESTOR" OMITTED.]
1949
BENJAMIN GRAHAM

[GRAPHIC OF BERKSHIRE HATHAWAY ANNUAL REPORT OMITTED.]
1951
WARREN E. BUFFETT

[GRAPHIC OF BOOK ENTITLED "SECURITY ANALYSIS" OMITTED.]
1988
ROGER F. MURRAY

[GRAPHIC OF BOOK ENTITLED "VALUE INVESTING" OMITTED.]
2001
BRUCE C. N. GREENWALD

                                       3
<PAGE>

EARNINGS, INTEREST RATES, INVESTOR PSYCHOLOGY AND THE STOCK MARKET
PREPARED FOR CIGAR AFICIONADO, BY MARIO J. GABELLI

The stock  market,  as  represented  by  popular  indices  such as the Dow Jones
Industrials  or Standard & Poor's 500, can be viewed both as a snapshot and as a
motion picture. A recent snapshot has captured equities at their worst. However,
"Stock  Market,  the Movie" has been a long running hit,  delivering  annualized
returns  from 1926 through the first ten months of 2001  approximating  11%. So,
put  your  digital  camera  down,  pick  up  your  camcorder,  and  let's  start
videotaping the interplay of earnings, interest rates and investor psychology on
the post September 11 stock market.  But first,  let's frame equity investing in
the proper perspective.

MR. MARKET

In my opinion,  the single best  description  of prudent  equities  investing is
contained  in  two  short  paragraphs  from  Benjamin  Graham's   classic,   The
Intelligent Investor, published in 1949. I quote:

"Let us close this  section with  something in the nature of a parable.  Imagine
that you own a small share of a private  company  that cost you  $1,000.  One of
your partners, named Mr. Market, is very obliging indeed. Every day he tells you
what he thinks your interest is worth and  furthermore  offers either to buy you
out or to sell you an additional  interest on that basis.  Sometimes his idea of
value appears plausible and justified by business  developments and prospects as
you know them.  Often,  on the other hand, Mr. Market lets his enthusiasm or his
fears run away with him,  and the value he proposes  seems to you a little short
of silly."

"If you are a  prudent  investor  or a  sensible  businessman,  will you let Mr.
Market's daily communication determine your view of the value of $1,000 interest
in the enterprise? Only in case you agree with him, or in case you want to trade
with him. You may be happy to sell out to him when he quotes you a  ridiculously
high  price,  and equally  happy to buy from him when his price is low.  But the
rest of the time you will be wiser to form  your own  ideas of the value of your
holdings,  based on full  reports  from the  company  about its  operations  and
financial position."

It is our, and every  prudent  investor's  job to try to determine the intrinsic
value of an individual  company or the market as a whole.  At any given point in
time,  intrinsic  value is largely a function of earnings  and  interest  rates.
Whether  stocks  trade at,  above,  or below  intrinsic  value is a function  of
investor psychology.  Mr. Market is the code name the traditional value investor
uses to personify investor psychology.

EARNINGS POWER

The aforementioned Benjamin Graham and his colleague David Dodd, who co-authored
Security Analysis,  viewed stocks as pieces of businesses to be owned long term,
rather than  pieces of paper to trade.  Consequently,  they saw little  merit in
assessing intrinsic value based on short-term earnings. Instead, they focused on
what they termed "earnings  power".  Earnings power is determined by reviewing a
company's  earnings  history,  evaluating  the  health of its  business  and its
competitive position within its industry,  and then projecting a growth rate for
future  earnings.  Were they  alive  today,  Graham and Dodd would be asking the
following  questions regarding the earnings power of corporate America in a post
9/11 economic environment:

o How bad is bad?

o How long will the difficulties last?

o Are the financial resources available to overcome the challenges?

o How good is  good--what  happens to earnings  growth rates once we emerge from
  this period of uncertainty?

Let's examine the current environment and try to answer the first three of these
questions.  The  economy is in  recession  and  corporate  earnings  are anemic.
However,  dealing  from  positions  of  strength--subdued  inflation  and budget
surpluses--the  Federal  Reserve and federal  government are pulling out all the
stops to reinvigorate the economy.  The Fed has injected massive  liquidity into
the system and as I write, has cut short-term interest rates 10 times this year,
for a total of 4.5% (6.5% to 2%).  Perhaps  more  importantly,  the Treasury has
announced it will no longer be issuing 30-year bonds. This has brought long-term
interest rates down, further fueling the home mortgage  refinancing boom that is
putting a lot of money in consumer's  pockets.  Lower  long-term  interest rates
also bring down the financial costs for corporations. This will have a favorable
impact  on  future  operating  earnings,   and  eventually   encourage  business
investment.  Although there is currently some squabbling  between  Democrats and
Republicans,  Congress will pass a substantial  economic stimulus  package.  Our
conclusion  is  that  we  will  experience  a  relatively  modest,   short-lived
recession,  with the economy and corporate  earnings  starting to recover in the
second half of 2002.

How good is good? Corporate America has cut a lot of fat from overhead, creating
earnings  leverage once demand  recovers.  Consequently,  I think  earnings will
climb sharply in mid 2002.  Over the long-term,  I believe  earnings growth will
approximate 6% - 8%. If earnings  recover as I anticipate,  lower interest rates
will have a beneficial impact on the present value of equity assets.

                                       4
<PAGE>
INTEREST RATES 101

Let's spend a few moments looking at what happens when interest rates decline:

o Reduced  Financial Costs.  This helps highly  leveraged  companies by reducing
  interest outlays.

o Improved Demand.  Lower rates help stimulate demand for traditional,  interest
  sensitive  economic  sectors -  residential  housing being one key and visible
  component.

o Focus on Dividends.  Clearly,  higher-yielding  stocks with reasonable  growth
  prospects  benefit from investors  seeking higher yields than they are getting
  from savings accounts.

o Higher Asset Values. Lower rates bolster the value of assets.
--------------------------------------------------------------------------------
                              ASSET VALUE SCENARIOS
                                            CASE
                                            ----
                            A                 B                     C
       Rates
                           $10           $10 + $1/YR        $10 growing at 8%
                   -------------------------------------------------------------
       10.0%              $3.86            $7.71               $  8.32
        8.0%              $4.63            $9.26                $10.00

       Case A:     What is the present value of $10 ten years from now
                   if interest  rates (the discount factor) are ten
                   percent; eight percent?

       Case B:     What is the present value of $10, ten years from now
                   if it grows by $1 per year?

       Case C:     What is the present value of $10, ten years from now,
                   growing at 8% per year?
--------------------------------------------------------------------------------
INTEREST RATES AND STOCK PRICES

The dividend discount model, shown below, is a popular  quantitative  method for
valuing stocks. Here, the key variable is the growth rate in dividends.

    P/E =           b
                ----------
    multiple        k-g       Where P/E:  price to earnings
                                      b:  dividend payout rate
                                      k:  required rate of return by an investor
                                      g:  expected growth rate

Briefly,  the model values stocks based on the relationship  between two crucial
inputs: dividend growth and an investor's required rate of return.

Interest  rates  have  declined  to  levels  we have  not  seen in a long  time.
Short-term  interest  rates  have not been  this low  since  1962.  The story is
similar for long-term  interest  rates except for a brief period during the LTCM
crisis  in 1998.  The  30-year  Treasury  bond was  first  issued in 1978 and it
carried a coupon of 8.00%.  These  were known as the "8s of 08."  Today,  with a
weak economy and the recent decision by the Treasury to halt the sale of 30-year
bonds, we are looking at sub 5% yields on long dated Treasury debt. In 1981, the
30-year  bond,  referred to by some as the "long guy",  carried a 15% coupon and
5-year Treasury notes were sold with a coupon of 16.125%.  Rising  productivity,
low  inflation,  and better  fiscal and monetary  discipline  on the part of the
Congress and Federal  Reserve  System all  contributed  to the truly  incredible
slide in interest rates.

Nominal interest rates,  comprised of "real" and "inflation"  components reflect
the time value of money. There is a set schedule regarding the timing and amount
of cash flows from a straight  bond.  You get coupon  payments  with the highest
degree of certainty-at least with U.S.  Treasuries-on  prescribed dates and your
principal paid back at maturity.  When you invest in stocks there is uncertainty
with  respect to the timing and level of the  company's  cash flow.  Uncertainty
means risk.  Consequently,  as a stock  investor  your  expected  return  (which
unfortunately  is not always  realized)  exceeds that which is available  from a
high quality bond. This  incremental  return is called the "equity risk premium"
and is one reason  why  interest  rates are a very  important  influence  on the
general level of stock prices. To value a business,  you must make an attempt to
calculate the present value of a company's future cash flows.

                                       5
<PAGE>

Generally, low interest rates and low inflation support higher price to earnings
(P/E)  multiples and thus higher stock prices.  The converse is also true.  This
historical relationship is shown on the chart to the right.

Consequently, rising rates are usually a negative for stocks and declining rates
are usually,  but not always, a positive.  Declining rates may not prevent stock
prices from falling if  corporate  profits are in free fall, a situation we have
experienced this year. Similarly,  rising rates are not always bad, particularly
in the  early  stages of an  economic  recovery  when  sharply  rising  earnings
accompany them. But there is little doubt  regarding the connection  between the
level and  direction  of  interest  rates and stock  prices.  The bull market in
stocks that began in August of 1982 and continued for most of the next 17 years,
was driven by the  combination  of falling  interest  rates and rising  profits,
albeit the connection was not always in lock-step.  It was almost too good to be
true as the Dow Jones Industrial Average bolted from about 800 to over 11,000.

The discount rate used to calculate  the present value of a company's  cash flow
stream can be just as important as the earnings themselves.  A simple example is
to calculate  the present  value of $10,000,  10 years from now,  with  interest
rates at both 15% and 5%. In a high rate environment, using a 15% discount rate,
the $10,000 of earnings a company generates 10 years out, has a present value of
$2,472. In contrast, using a 5% discount rate gives the earnings a present value
of $6,139.  In other  words,  a promise  to  receive  $10,000 in ten years has a
higher value in current dollars when interest rates are low.

Thanks to the mathematics of compounding,  lower rates are particularly positive
for high growth stocks  because the present value of a rapidly  rising  earnings
stream  will be  higher  than the  present  value of a slower  growing  earnings
stream, everything else being equal.

So the moral of the story is that  declining  interest rates are good for stocks
but even better for  "growth"  stocks.  The current  bond yield  environment  is
potentially  rocket fuel for quality growth stocks.  It is also strong tonic for
stocks with reasonably good dividend yields, assuming such dividends are secured
by earnings that cover the dividend payments with a healthy margin of safety.

Many years ago most stocks  provided  dividend yields that exceeded bond yields,
making  stocks  attractive  for  income   generation.   Investors  were  not  as
comfortable  with stocks then and demanded  robust  dividend  payments to induce
them to buy stocks.  With money market and savings account yields hovering at or
even below 2%, many  investors can easily  increase  their income  generation by
reallocating  assets to stocks with current  dividend yields in excess of 2%. As
dividends grow over time, the investors'  income stream will grow in tandem.  If
income is an investment priority, it's time to think about adding some stocks to
the mix.

INVESTOR PSYCHOLOGY

Of course, intrinsic value and equities pricing are horses of two very different
colors.  Remember the emotional Mr. Market often values stocks  materially above
and  substantially  below intrinsic value.  So, investor  psychology will have a
major impact on market trends in the year ahead.

Are they ready?  I think so.  Investors  are going to have to deal with  another
quarter or two of ugly  earnings and ongoing  concern over  terrorism--the  fear
factor that  ultimately  resulted in a classic  "flight to quality" in the third
quarter. However, when the political and economic dust settles, fear will likely
give way to greed that will not be  satisfied  by today's  anemic  returns  from
bonds and money market funds.

In closing,  investors  today are faced with an easy  choice--fretting  over the
short-term  prospects for the economy and the market,  or taking the longer view
that  recessions  and  bear  markets  present  excellent  long-term   investment
opportunities.  It always takes courage to invest in depressed  markets,  but if
you focus on  fundamentally  sound  businesses  trading at bargain prices,  your
courage is generally rewarded.

INFLATION AND P/E'S BY DECADE
                                                      Average Yearly Price
                   Average CPI       Average P/E           Change S&P
                   -------------------------------------------------------

   1990s              2.9%              20.4                  18.2%
   1980s              5.1%              12.0                  17.5%
   1970s              7.4%              10.9                  5.9%
   1960s              2.5%              17.6                  7.8%

                                       6
<PAGE>

COMMENTARY

AMERICAN HEROES

      In the months following  September 11, we have been  celebrating  American
heroes.  New York City  firefighters,  policemen,  and emergency service workers
have been honored for their bravery and sacrifice. Political leaders such as New
York City Mayor Rudy Guiliani,  President Bush, Secretary of State Colin Powell,
and Secretary of Defense  Donald  Rumsfeld  have been  applauded for their adept
handling of this crisis.  We praise  American  servicemen  who have been risking
their lives in Afghanistan  to hunt down and capture the terrorists  responsible
for the tragedy.

      To this list of heroes,  we would add the American  consumer,  who through
their  collective  courage and  confidence in the American  system,  have helped
avert what might have  become an  economic  catastrophe.  So,  let's hear it for
everyone who despite all the political and economic  uncertainty  resulting from
horrifying terrorist attacks,  went out and bought a new home, or a car, or took
their families on vacation, or simply treated their loved ones to a good holiday
season.  These  courageous folks are the reason the American economy has held up
so well during  these  trying times and the people who will lead our economy out
of recession in the year ahead.

AND THEIR ALLIES

      The American  consumer has had two important  allies.  The Federal Reserve
Board responded  promptly and effectively to the terrorist crisis by injecting a
massive  dose of liquidity  into the  financial  system and lowering  short-term
interest  rates to levels we  haven't  seen in forty  years.  The U.S.  Treasury
Department  announced  it would cease  issuing  30-year  bonds,  in the process,
bringing  longer-term interest rates down and accelerating the home re-financing
boom that has provided much of the money  consumers have been spending.  We also
acknowledge  the leadership of General  Motors,  which initiated a brilliant and
timely 0% APR financing to "Keep America Rolling." As we prepare this letter, we
have to give a demerit to the U.S Congress,  which is letting partisan  politics
get in the way of a  second  fiscal  booster  shot,  particularly  one  aimed at
bolstering confidence among business leaders.

A NEW BULL MARKET?

      Despite the economy's surprising  resilience and the stock market's strong
fourth  quarter,  many  investors  remain wary as  evidenced  by the record $2.3
trillion  parked in money market funds  yielding  about 2%. What will it take to
bring more  investors  off the  sidelines?  An official end to the recession and
better corporate earnings. We believe both are right around the corner.

      Economic data released on December 31 revealed  widespread  improvement in
consumer  confidence  and  housing,  and  even a  modest  increase  in  business
investment.  Growth in unemployment  insurance claims also slowed. These are all
valid  indications  the economy is beginning to regain its footing.  At issue is
just how strong the economic  recovery will be. Although  inventories  have been
reduced  significantly  and there has been a modest  up-tick in sales,  there is
still a great deal of excess  capacity in the  manufacturing  sector.  This will
likely restrain growth in business investment,  forcing the American consumer to
continue  to shoulder  much of the  economic  load.  We believe  Gross  Domestic
Product ("GDP") will be up 3% to 4% in 2002,  well above the longer-term  growth
of 2.5% to 3% we envision. The cut in taxes along with lower oil and fuel prices
will help consumer  spending  overcome the drag from the stock  market's  wealth
effect and rising unemployment.

      Fortunately,  we  will  not  need an  especially  strong  recovery  to see
significantly  better corporate  earnings in 2002.  Companies in virtually every
industry have been aggressively  cutting costs. With the exception of pockets in
the  technology  and  telecommunications  equipment  industries,  the  inventory
correction has largely run its course.  Corporate interest expense has declined,
as have raw materials and energy prices.  Corporate America wrote off everything
it could get away with in 2001 (we call this the "kitchen sink" effect), and due
to Federal  Accounting  Standard  Board  (FASB) Rule 142, the  "amortization  of
goodwill" will no longer  penalize  earnings.  Consequently,  a modest  economic
recovery  in the year  ahead  should be  magnified  in sharply  higher  reported
earnings.  Very "easy" earnings  comparisons in the first and second quarters of
2002 should help  stabilize  the market until  investors  gain  confidence  that
earnings will improve in the second half. In addition,  the crisis in confidence
arising from "Enron" will result in auditing  firms and CFO's  cleaning up their
numbers (we observe that aggressive accounting will be back - but not in 2002).

                                       7
<PAGE>

APOCALYPSE AVERTED

      In our third  quarter  letter to  shareholders,  we  detailed  the woes of
advertising-supported  media companies. The first big blow was the demise of the
free spending  dotcoms in the spring of 2000.  Then,  with the general  economic
malaise, corporate advertising budgets began shrinking and revenues and earnings
for   advertising-supported   media  companies   declined   sharply,   punishing
broadcasting, newspaper publishing, and cable network stocks.

      After  September  11,  everyone  expected  things to go from bad to worse.
Amazingly,  thanks to the  courageous  American  consumer,  the economy  held up
remarkably  well,  and  although  corporate  advertising  spending  has  not yet
increased,  investors began anticipating  better days ahead and taking advantage
of outstanding bargains.  Advertising-supported media stocks went from being the
portfolio's  worst  performers  through the first three  quarters of 2001 to our
biggest winners in the fourth  quarter.  With the Salt Lake City Winter Olympics
and America's patriotic fervor promising good ratings, broadcasters should get a
shot in the arm.  Also,  with  partisan  politics  rearing  its ugly head over a
fiscal stimulus package,  we can expect mid-term election political  advertising
to be strong. We believe  advertising and media supported earnings will surprise
on the upside in the quarters  ahead,  helping sustain the strong rally begun in
the fourth quarter.

ALL TOO QUIET ON THE DEAL FRONT

      As is usually  the case during  recessions  and bear  markets,  merger and
acquisition  activity slowed  considerably in 2001. Fewer deals get done when it
is difficult to accurately assess a target company's  intermediate-term  revenue
and profit prospects and/or confidently project the future value of an acquiring
company's  stock as deal currency.  We experienced the same kind of lull in deal
activity in the months following the mini-crash of October 1987 and again during
the 1990-1991 recession and market correction. However, recessions and declining
stock  markets  usually set the stage for  accelerating  merger and  acquisition
activity.  The reason is  simple--there  are more bargains  available.  Once the
economic and market dust  settles,  these  bargains  tend to get snapped up in a
hurry.

INVESTMENT SCORECARD

      Dominant  media  franchises  such as video  rental king  Blockbuster,  tax
preparer H&R Block, ticket retailer  Ticketmaster,  and credit  rating/reporting
companies Moody's and Dun & Bradstreet  performed  exceptionally well this year.
Newspaper publishers Media General,  Journal Register,  Belo, Knight Ridder, and
Meredith Corp. delivered solid returns.  Although the performance of small group
broadcasters was mixed, Ackerley Group was near the top of our performance list.

      Almost everything with a telecom label retreated in 2001. Leading European
telecommunications  companies  including  France Telecom,  Deutsche  Telekom and
Cable & Wireless were particularly poor performers. Telecommunications remains a
troubled industry, but we are seeing signs of fundamental progress and the group
did rally with the market in the fourth quarter. Among our largest holdings (and
best   performing   investments   in  recent   years),   Cablevision   retreated
substantially, making it an even more attractive takeover target in our opinion.

--------------------------------------------------------------------------------
                                SELECTED HOLDINGS
                                DECEMBER 31, 2001

Ackerley Group Inc.                        Nextel Communications Inc.
Cablevision Systems Corp.                  Tribune Co.
Gaylord Entertainment Co.                  USA Networks Inc.
Group Televisa SA                          Viacom Inc.
Liberty Media Corp.                        Vivendi Universal SA
--------------------------------------------------------------------------------

FINANCIAL ENGINEERING - ONE OF OUR CATALYSTS

      A component  of our  investment  methodology  is to identify  industry and
sector  trends  and themes  ahead of the curve and  position  ourselves  to take
advantage of these  developments.  Consolidation in a particular industry is one
such  dynamic.  As we have shared with you in previous  quarterly  letters,  the
activity in mergers and acquisitions,  albeit slow, contributed significantly to
the  performance  of our Trust.  The  accompanying  table  illustrates  how deal
activity surfaced value in a small sample of the portfolio holdings.
                                       8

<PAGE>

--------------------------------------------------------------------------------
                              2001 COMPLETED DEALS
<TABLE>
<CAPTION>
                                                      NUMBER       AVERAGE COST     CLOSING
   TRUST HOLDING                                   OF SHARES (a)   PER SHARE (b)   PRICE (c)   CLOSING DATE  % RETURN (d)
   -------------                                   ------------    ------------    ---------   ------------  ------------
   <S>                                                <C>              <C>           <C>        <C>            <C>
   FIRST QUARTER 2001 DEALS
   ------------------------
   Time Warner Inc.                                   37,000           $21.26        $71.19      01/12/01      234.85%
   America Online Inc.                                   360             7.78         47.23      01/12/01      507.07%
   Granada Compass plc                                 5,283             2.05          2.86      02/02/01       39.51%
   Telefonos de Mexico SA, Cl. L, ADR                 19,000             9.36         32.66      02/08/01      248.93%

   FIRST QUARTER 2001 FINANCIAL ENGINEERING
   ----------------------------------------
   Bowlin Outdoor Advertising
      & Travel Centers Inc.                            4,000             5.04          8.05      02/01/01       59.72%
   Cablevision Systems Corp., Cl. A                   50,000            25.94         83.36      03/30/01      221.36%

   SECOND QUARTER 2001 DEALS
   -------------------------
   Powertel Inc.                                      10,075            53.60         59.05      05/23/01       10.17%

   THIRD QUARTER 2001 DEALS
   ------------------------
   Houghton Mifflin Co.                                4,500            21.81         59.95      07/06/01      174.87%
   Harcourt General Inc.                              30,000            43.38         58.93      07/11/01       35.85%
   Chris-Craft Industries Inc.                        76,150            44.20         68.60      07/30/01       55.20%
   United Television Inc.                             14,600            90.83        122.80      07/30/01       35.20%

   THIRD QUARTER 2001 FINANCIAL ENGINEERING
   ----------------------------------------
   Liberty Media Group, Cl. A                        680,000             3.49         15.76      08/10/01      351.58%

   FOURTH QUARTER 2001 DEALS
   -------------------------
   Japan Telecom Co. Ltd.                                174         1,533.61      3,138.35      10/26/01      104.64%

--------------------------------------------------------------------------------
<FN>

(a)  Number of shares  held by the  Trust on the  final day of  trading  for the
issuer.
(b) Average purchase price of issuer's shares held by the Trust 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.
</FN>
</TABLE>
--------------------------------------------------------------------------------

      In recent quarterly  reports,  we have discussed at length how and why the
deregulation of the media industry (encompassing broadcasting, cable television,
CATV and network  programming  assets,  and  publishing)  should lead to another
round of  consolidation.  We saw only two major media  deals in  2001--Vivendi's
purchase of USA Networks' USA and Sci-Fi cable channels,  and Comcast's  pending
acquisition of AT&T's cable television assets. But, we see more big deals coming
in the year ahead.  AOL dropped out of the bidding for AT&T's cable  properties,
probably  due to the  belief  that a merger of these two cable  giants  wouldn't
survive anti-trust  scrutiny.  However, we believe AOL is committed to expanding
its cable footprint and that Cablevision,  one of our largest holdings, could be
a target.

      We have also  detailed how  deregulation  combined  with rapidly  changing
economics should lead to increased deal activity in the utilities sector. Due to
the California utilities mess and more recently,  the collapse of energy trading
giant Enron,  there has been little deal  activity in the utilities  sector.  We
believe  this  will  change in the year  ahead as the  wholesale  energy  market
stabilizes.  Our  primary  utilities  investments  are in smaller  companies  we
believe will be targeted by larger competitors.

      We also expect to see accelerating merger and acquisition  activity in the
currently depressed  telecommunications and aerospace industries.  The "new kids
on the telecom  block" are in dire  financial  circumstances.  Valuable  telecom
assets will be bought for a song by more established  players.  While we usually
count on enhancing  portfolio returns through investing in takeover targets,  in
the wireline  telecom arena,  we expect to be rewarded by owning the strong that
will get  stronger  as they  acquire  valuable  assets  cheap.  In the  wireless
communications  sector,  we expect  some of our  holdings to be acquired as this
still fragmented  industry  consolidates.  The troubled  aerospace industry will
experience a classic  "shakeout" as companies  merge to realize the economies of
scale  that  will  allow  them to  survive  in an  industry  that  has  been hit
particularly hard by the terrorist attacks.

LET'S TALK STOCKS

      The  following  are stock  specifics  on  selected  holdings of our Trust.
Favorable  earnings  prospects do not  necessarily  translate  into higher stock
prices,  but they do express a positive  trend that we believe will develop over
time.

                                       9
<PAGE>

ACKERLEY GROUP INC. (AK - $17.50 - NYSE), headquartered in Seattle,  Washington,
is a diversified media company with operations throughout the United States. The
company  operates the nation's  fourth largest  outdoor media company.  Ackerley
also owns or operates 18 television stations and five radio stations. On October
8, 2001, Ackerley announced that it had entered into an agreement to be acquired
by Clear  Channel  Communications,  Inc.  (CCU - $50.91 - NYSE).  Each  Ackerley
shareholder  will be entitled to receive 0.35 shares of Clear Channel stock. The
deal is expected to close in the first half of 2002.

CABLEVISION  SYSTEMS CORP. (CVC - $47.45 - NYSE) is one of the nation's  leading
communications and entertainment companies,  with a portfolio of operations that
spans  state-of-the-art  cable television  services,  championship  professional
sports teams and national cable television networks.  Headquartered in Bethpage,
N.Y.,  Cablevision  serves 3 million cable customers in the most important cable
TV market - New York.  Cablevision  also owns and operates New York City's famed
Madison Square Garden (MSG), which includes the arena complex,  the N.Y. Knicks,
the N.Y. Rangers and the MSG network.  MSG operates Radio City Entertainment and
holds a  long-term  lease for Radio City Music  Hall,  home of the  world-famous
Rockettes.  On March 30, 2001,  shares that track the  performance of the firm's
national  cable  programming  subsidiary,  Rainbow  Media  Group (RMG - $24.70 -
NYSE), began trading on the NYSE. Rainbow manages growing content offerings such
as American Movie Classics, Bravo and The Independent Film Channel.

GAYLORD  ENTERTAINMENT CO. (GET - $24.60 - NYSE) is a diversified  entertainment
company  operating  principally  in two  segments:  hospitality  and media.  The
company's  hospitality  group  consists of an  interrelated  group of businesses
including the Opryland Hotel Nashville, the Inn at Opryland, the General Jackson
(an  entertainment  showboat),  and other  related  businesses.  The media group
consists  primarily of the Grand Ole Opry, the Ryman  Auditorium,  the Wildhorse
Saloon,  Acuff-Rose Music Publishing,  three Nashville radio stations, and other
related  businesses.  Gaylord  has a new  management  team that is  focusing  on
unlocking shareholder value.

GRUPO  TELEVISA  SA (TV - $43.18  - NYSE),  headquartered  in  Mexico,  is Latin
America's dominant Spanish language media and broadcast company. The company has
interests  in  television  production  and  broadcasting,  programming  for  pay
television, direct-to-home ("DTH") satellite services, publishing and publishing
distribution,  cable television,  radio broadcasting and production. The company
also produces  thousands of hours of television  programming  annually  which it
exports  to over 21  countries  including  the  United  States.  This  large and
expanding  program  library is exclusively  available for U.S.  distribution  by
Univision  Communications  (UVN - $40.46 - NYSE), a Spanish-language  television
broadcaster  in the United  States in which  Grupo  Televisa  has as a 15% fully
diluted equity stake.

LIBERTY  MEDIA  CORP.  (L - $14.00 - NYSE),  run by savvy  media  investor  John
Malone, is engaged in businesses that provide  programming  services  (including
production,  acquisition and distribution  through all media formats) as well as
businesses engaged in electronic retailing, direct marketing and other services.
Liberty Media holds interests in globally branded entertainment networks such as
the  Discovery  Channel,  USA  Networks,  QVC,  Encore  and  STARZ!.   Liberty's
investment portfolio also includes interests in international video distribution
businesses,  international telephony and domestic wireless companies,  plant and
equipment manufacturers, and other businesses related to broadband services.

NEXTEL  COMMUNICATIONS  INC.  (NXTL - $10.96  -  NASDAQ)  is the last  remaining
independent  national  wireless  carrier in US,  servicing over 8 million mostly
high-value business  subscribers and controlling wireless licenses covering over
235  million  people.   Nextel  International,   a  wholly-owned   international
subsidiary of Nextel,  serves about 900,000 wireless  customers in Latin America
and has licenses covering over 230 million people in Brazil, Argentina,  Mexico,
Peru and Chile.  Nextel  offers a set of  differentiated  wireless  products and
caters primarily to business customers.

TRIBUNE CO. (TRB - $37.43 - NYSE),  headquartered  in Chicago,  IL, is a leading
national  media  company with  operations in major U.S.  markets.  With its 2000
acquisition of The Times Mirror Company,  it now has television and/or newspaper
properties  in 18 of the nation's top 30 markets.  It is the only media  company
with  television,  newspaper  and Internet  properties in the nation's top three
markets - New York,  Los  Angeles  and  Chicago.  Flagship  properties  include:
WPIX-TV (New York),  WGN-TV (Chicago),  Newsday,  Los Angeles Times, and Chicago
Tribune.  Additionally,  Tribune owns the Chicago Cubs and has a stake in the WB
Television  Network.  The  company is focused on growing and  strengthening  its
major market cross-media positions.

USA NETWORKS INC. (USAI - $27.31 - NASDAQ), through its subsidiaries, engages in
diversified  media and electronic  commerce  businesses that include  electronic
retailing,  ticketing  operations and cable  television.  Chairman and CEO Barry
Diller has brought  together  under one  umbrella  the USA  Network,  the Sci-Fi
Channel,  USA Networks  Studios,  The Home Shopping Network and the Ticketmaster
Group.  USA recently  announced a deal to purchase  the majority of  Expedia.com
(EXPE - $40.61 - Nasdaq), a travel oriented website,  from Microsoft Corp. (MSFT
- $66.25  -  Nasdaq).  Moreover,  they  have  announced  they  will  sell  their
entertainment  assets  (USA  Networks,  Sci  Fi  Channel,  Studios)  to  Vivendi
Universal (V - $53.79 - NYSE), leaving the firm to focus on electronic commerce.
As media,  advertising  and direct  selling  converge,  USA stands to be a major
player.

VIACOM INC. (VIA - $44.25 - NYSE) is a diversified media company with businesses
across many media  platforms.  The firm operates cable networks  (including VH1,
MTV, Showtime and Nickelodeon),  television networks and stations (including the
CBS and UPN  Television  networks and numerous  affiliated  TV stations in major
markets),  major market radio stations and outdoor advertising (through Infinity
Broadcasting),  a movie  studio  (Paramount),  a  publishing  house  (Simon  and
Schuster),  amusement  parks  (Paramount  Parks)  and  video  rental  operations
(Blockbuster  Inc).  The company  focuses on high growth  businesses and aims to
deliver cash flow growth that is above the industry average.

                                       10
<PAGE>

     VIVENDI  UNIVERSAL (V - $53.79 - NYSE)  recently  completed its merger with
Canal  Plus,  of  France,  and  Seagram,  of  Canada,  thus  creating  a  global
communications  and  entertainment  powerhouse.  Vivendi now owns  wireless  and
wireline  communications  companies,  European cable and satellite assets, Havas
Publishing,  Seagram's former Universal Film, Music, and Entertainment divisions
and a varied assortment of internet investments. The firm recently announced two
large deals. First, Vivendi will invest $1.5 billion in Echostar  Communications
(DISH - $27.47 - Nasdaq) and launch  several new  channels  on  Echostar's  DISH
Direct Broadcast  Satellite ("DBS") network.  Second, it will acquire the filmed
entertainment  and cable channel  business of USA Networks Inc. (USAI - $27.31 -
Nasdaq).  Vivendi  has now  locked in U.S.  distribution  for its  massive  film
libraries at Universal Studios and at France's Canal Plus.

STOCK REPURCHASE PLAN
      The  Trust is  authorized  to  repurchase  up to  1,000,000  shares of the
Trust's  outstanding  shares.  Pursuant to this stock repurchase plan, the Trust
may from time to time  purchase  shares of its capital  stock in the open market
when the  shares are  trading  at a  discount  of 10% or more from the net asset
value of the shares.  In total,  through December 31, 2001,  759,833 shares have
been repurchased in the open market under this stock repurchase plan.

7.92% CUMULATIVE PREFERRED STOCK - DIVIDENDS
      The Trust's 7.92% Cumulative  Preferred Stock paid a cash  distribution on
December  26, 2001 of $0.495 per share.  For the year ended  December  31, 2001,
Preferred Stock shareholders received  distributions  totaling $1.98, the annual
dividend rate per share of Preferred Stock.  The next  distribution is scheduled
for March 2002.

WWW.GABELLI.COM
      Please visit us on the  Internet.  Our homepage 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 closedend@gabelli.com.
      In  our  efforts  to  bring  our   shareholders   more  timely   portfolio
information,  Gabelli Fund's portfolio  managers  regularly  participate in chat
sessions at www.gabelli.com as reflected below.
<TABLE>
<CAPTION>
                        WHO                                 WHEN
                        ---                                 ----
      <S>               <C>                                 <C>
      Special Chats:    Mario J. Gabelli                    First Monday of each month
                        Howard Ward                         First Tuesday of each month
</TABLE>
     In addition,  every Wednesday will feature a different  portfolio  manager.
The upcoming Wednesday chat schedule is as follows:
<TABLE>
<CAPTION>
                        FEBRUARY                            MARCH                              APRIL
                        --------                            -----                              -----
<S>                     <C>                                 <C>                                <C>
1st Wednesday           Charles Minter & Martin Weiner      Henry van der Eb                   Susan Bryne
2nd Wednesday           Ivan Arteaga                        Walter Walsh & Laura Linehan       Lynda Calkin
3rd Wednesday           Tim O'Brien                         Tim O'Brien                        Caesar Bryan
4th Wednesday           Barbara Marcin                      Barbara Marcin                     Barbara Marcin

</TABLE>

     All chat sessions start at 4:15 ET. Please arrive early,  as  participation
is  limited.
     You may sign up for our HIGHLIGHTS e-mail newsletter at www.gabelli.com and
receive early notice of chat sessions,  closing mutual fund prices,  news events
and media sightings.

IN CONCLUSION

      Advertising-supported media is an economically sensitive business. So, the
poor  performance  of this sector  during a period in which the economy  drifted
toward and ultimately into recession is  understandable.  With growing  evidence
the economy has regained its footing,  investors  have been taking  advantage of
outstanding bargains.  Better than expected earnings in 2002 should help sustain
the advance.  Deal activity also slowed as the economy weakened and the value of
stock as a deal currency  declined.  As the economy recovers and equities prices
continue to firm, we should see merger and acquisition  activity increase in the
multimedia sector.  These factors combined should make 2002 a Happy New Year for
multimedia investors.

                                  Sincerely,

                                  /S/MARIO J. GABELLI
                                  MARIO J. GABELLI, CFA
                                  Portfolio Manager and Chief Investment Officer

February 6, 2002

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, 2001

                                                                          MARKET
    SHARES                                                  COST           VALUE
    ------                                                  ----          ------

                COMMON STOCKS -- 87.3%
                COPYRIGHT/CREATIVITY COMPANIES -- 34.1%
                ADVERTISING -- 0.1%
     4,200      Havas Advertising SA ...........      $   20,733      $   30,403
     2,000      Publicis Groupe ................          13,971          52,977
                                                      ----------      ----------
                                                          34,704          83,380
                                                      ----------      ----------
                CABLE PROGRAMMERS -- 2.1%
    60,000      Canal Plus, ADR ................          10,818          38,250
   140,000      USA Networks Inc.+ .............       1,762,815       3,823,400
                                                      ----------      ----------
                                                       1,773,633       3,861,650
                                                      ----------      ----------
                COMPUTER SOFTWARE AND SERVICES -- 2.3%
     1,500      Activision Inc.+ ...............           6,415          39,015
    10,000      America Online
                Latin America Inc.+ ............          80,000          45,500
     3,000      Atlus Co. Ltd. .................          17,662          15,588
     8,000      Block (H&R) Inc. ...............         162,450         357,600
     6,473      CNET Networks Inc.+ ............          91,728          58,063
     3,230      EarthLink Inc.+ ................          45,250          39,309
       500      Electronic Arts Inc.+ ..........           5,588          29,975
    38,000      EMC Corp.+ .....................         631,918         510,720
   135,000      Genuity Inc.+ ..................         613,906         213,300
    10,000      INT Media Group Inc.+ ..........          12,067          19,000
     6,000      Intel Corp. ....................         179,875         188,700
    35,000      Microsoft Corp.+ ...............       1,577,968       2,318,750
     2,000      Mobius Management
                  Systems+ .....................          12,540           6,000
     1,000      Pixar Inc.+ ....................          39,153          35,960
    12,000      Yahoo! Inc.+ ...................         194,054         212,880
                                                      ----------      ----------
                                                       3,670,574       4,090,360
                                                      ----------      ----------
                CONSUMER PRODUCTS -- 0.2%
     6,000      Department 56 Inc.+ ............          65,655          51,600
    20,000      Mattel Inc. ....................         241,358         344,000
                                                      ----------      ----------
                                                         307,013         395,600
                                                      ----------      ----------
                DIVERSIFIED PUBLISHERS -- 12.9%
    20,000      Arnoldo Mondadori
                  Editore SpA ..................          63,827         126,434
   100,000      Belo Corp., Cl. A ..............       1,556,990       1,875,000
     1,000      Dow Jones & Co. Inc. ...........          46,722          54,730
    20,000      EMAP plc .......................         207,970         212,490
    18,000      Gannett Co. Inc. ...............         967,807       1,210,140
     2,833      Golden Books Family
                  Entertainment Inc.+ ..........               0              10
    14,000      Harte-Hanks
                  Communications Inc. ..........         155,067         394,380
     2,000      Hollinger International Inc. ...          26,475          23,400
   114,000      Independent News &
                  Media plc, Dublin ............         169,063         213,156
    15,000      Journal Register Co.+ ..........         244,399         315,600
    12,000      Knight-Ridder Inc. .............         452,590         779,160
    55,000      Lee Enterprises Inc. ...........       1,204,236       2,000,350
    20,000      McClatchy Co., Cl. A ...........         546,094         940,000
    16,000      McGraw-Hill
                  Companies Inc. ...............         612,170         975,680
    22,600      Media General Inc., Cl. A ......         989,625       1,126,158
    27,000      Meredith Corp. .................         636,668         962,550
   100,000      Nation Multimedia Group+ .......          84,677          30,861
   100,000      New Straits Times Press
                  Berhad .......................         296,714         131,577

                                                                          MARKET
    SHARES                                                  COST           VALUE
    ------                                                  ----          ------
   150,000      Oriental Press Group ...........      $   46,315      $   18,659
    95,000      Penton Media Inc. ..............       1,269,610         594,700
    10,000      Playboy Enterprises Inc.,
                  Cl. A+ .......................          97,125         144,900
    97,400      Post Publishing Co. Ltd. .......          47,100          92,489
   119,000      PRIMEDIA Inc.+ .................         700,221         517,650
    47,000      Pulitzer Inc. ..................       1,393,375       2,397,000
    60,000      Reader's Digest
                  Association Inc., Cl. B ......       1,353,116       1,344,000
    33,000      Scripps (E.W.) Co., Cl. A ......       2,001,394       2,178,000
    34,452      Singapore Press Holdings Ltd. ..         446,286         406,744
   385,000      SCMP Group Ltd. ................         273,458         241,926
       300      SPIR Communication .............          23,329          20,835
    15,000      Telegraaf Holdingsmij - CVA ....         285,271         228,248
    48,000      Thomas Nelson Inc.+ ............         570,212         532,800
    85,000      Tribune Co. ....................       2,892,899       3,181,550
    10,000      United Business Media plc,
                  ADR ..........................         125,412          79,200
       800      Wiley (John) & Sons Inc.,
                  Cl. B ........................           5,692          18,600
     4,000      Wolters Kluwer NV ..............          90,625          91,175
                                                      ----------      ----------
                                                      19,882,534      23,460,152
                                                      ----------      ----------
                ENTERTAINMENT PRODUCTION -- 1.0%
    21,622      EMI Group plc ..................          89,060         112,344
    20,000      EMI Group plc, ADR .............         317,997         208,704
     7,000      Grammy Entertainment plc+ ......          55,457          13,453
     9,000      GTECH Holdings Corp.+ ..........         167,644         407,610
     1,000      Martha Stewart Living
                  Omnimedia Inc., Cl. A+ .......          18,000          16,450
    38,710      Metro-Goldwyn-Mayer Inc.+ ......         699,139         847,749
     3,000      Princeton Video Image Inc.+ ....          21,000           6,660
   100,000      Shaw Brothers
                  (Hong Kong) Ltd. .............         145,928          92,333
     2,000      Sunland Entertainment
                  Co. Inc.+ ....................           2,500             170
     4,000      World Wrestling Federation
                  Entertainment Inc.+ ..........          58,000          52,600
                                                      ----------      ----------
                                                       1,574,725       1,758,073
                                                      ----------      ----------
                GLOBAL MEDIA AND ENTERTAINMENT -- 9.7%
       481      Boston Celtics L.P. ............           4,267           5,291
    52,000      Disney (Walt) Co. ..............       1,332,719       1,077,440
    32,000      Fox Entertainment
                  Group Inc., Cl. A+ ...........         722,750         848,960
    25,000      Gemstar-TV Guide
                  International Inc.+ ..........         740,762         692,500
     5,282      Granada Compass plc ............          35,566          11,032
   155,000      Grupo Televisa SA, ADR+ ........       5,215,748       6,692,900
    20,000      News Corp. Ltd., ADR ...........         396,739         636,200
    30,000      Six Flags Inc. .................         421,092         461,400
    70,000      SMG plc ........................         205,497         154,346
     9,500      Sony Corp., ADR ................         548,971         428,450
   149,000      Viacom Inc., Cl. A+ ............       2,246,128       6,593,250
                                                      ----------      ----------
                                                      11,870,239      17,601,769
                                                      ----------      ----------
                HOTELS AND GAMING -- 5.7%
    10,000      Aztar Corp.+ ...................          51,125         183,000
     6,000      Churchill Downs Inc. ...........         125,432         221,820
   199,500      Gaylord Entertainment Co.+ .....       5,086,459       4,907,700
   721,000      Hilton Group plc ...............       2,758,099       2,214,135
    85,000      MGM Mirage Inc.+ ...............       2,288,572       2,453,950

                See accompanying notes to financial statements.

                                       12
<PAGE>

                    THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
                      PORTFOLIO OF INVESTMENTS (CONTINUED)
                                DECEMBER 31, 2001

                                                                          MARKET
    SHARES                                                  COST           VALUE
    ------                                                  ----          ------

                COMMON STOCKS (CONTINUED)
                COPYRIGHT/CREATIVITY COMPANIES (CONTINUED)
                HOTELS AND GAMING (CONTINUED)
    10,000      Park Place
                  Entertainment Corp.+ .........      $   61,344      $   91,700
    10,000      Starwood Hotels & Resorts
                  Worldwide Inc. ...............         309,513         298,500
                                                      ----------      ----------
                                                      10,680,544      10,370,805
                                                      ----------      ----------
                INFORMATION PUBLISHING -- 0.1%
       500      Dun and Bradstreet Corp.+ ......           6,320          17,650
     8,000      Interactive Data Corp. .........          52,250         113,120
     1,000      Moody's Corp. ..................          20,012          39,860
     1,000      Scholastic Corp.+ ..............          16,500          50,330
                                                      ----------      ----------
                                                          95,082         220,960
                                                      ----------      ----------
                TOTAL COPYRIGHT/
                  CREATIVITY
                  COMPANIES ....................      49,889,048      61,842,749
                                                      ----------      ----------
                DISTRIBUTION COMPANIES -- 53.2%
                BROADCASTING -- 10.6%
    91,500      Ackerley Group Inc.+ ...........         712,362       1,601,250
     8,450      American Tower Corp.,
                  Cl. A+ .......................         124,546          80,021
    12,000      CanWest Global
                  Communications Corp. .........         133,608          89,400
    18,000      CanWest Global
                  Communications Corp.,
                  Sub-Voting ...................          92,011         134,189
     2,000      Carlton Communications plc,
                  ADR ..........................          63,625          36,000
     8,333      Corus Entertainment Inc.,
                  Cl. B+ .......................          33,927         165,484
     9,000      Cox Radio Inc., Cl. A+ .........          55,500         229,320
    15,500      Crown Media Holdings Inc.,
                  Cl. A+ .......................         222,000         174,995
     1,000      Emmis Communications
                  Corp., Cl. A+ ................          10,489          23,640
    28,520      Fisher Communications Inc. .....       1,505,735       1,254,880
     2,000      General Electric Co. ...........          19,537          80,160
    67,500      Granite Broadcasting Corp.+ ....         400,055         139,050
    14,125      Gray Communications
                  Systems Inc. .................         180,169         196,055
   100,000      Gray Communications
                  Systems Inc., Cl. B ..........       1,295,437       1,039,000
     7,000      Groupe AB SA, ADR+ .............          42,850          73,857
    10,000      Grupo Radio Centro,
                  SA de CV, ADR ................          77,872          60,800
    36,000      Hearst-Argyle Television Inc.+ .         359,949         776,160
     4,550      LaGardere S.C.A ................         100,163         190,407
   151,000      Liberty Corp. ..................       6,950,356       6,213,650
     4,000      Metropole TV M6 SA .............          35,208         113,968
     3,000      Nippon Television Network ......         507,941         638,868
     4,650      NRJ Group ......................          22,694          86,697
     1,000      NTN Communications Inc.+ .......             862             900
    62,400      Paxson
                  Communications Corp.+ ........         528,309         652,080
       500      Radio One Inc.+ ................           5,510           9,235
     1,000      Radio One Inc., Cl. D+ .........          11,428          18,010
     1,500      RTL Group (Brussels) ...........          76,363          58,832
     3,500      RTL Group (New York) ...........         113,838         137,430
     1,525      SAGA Communications Inc.,
                  Cl. A ........................           9,710          31,568
<PAGE>

                                                                          MARKET
    SHARES                                                  COST           VALUE
    ------                                                  ----          ------
    80,000      Salem Communications
                  Corp., Cl. A+ ................      $1,285,175      $1,840,000
     2,000      SBS Broadcasting SA+ ...........          42,023          36,200
    30,000      Sinclair Broadcast Group Inc.+ .         311,913         283,800
    43,000      Sistem Televisyen
                  Malaysia Berhad ..............          41,566           5,997
     1,000      Spanish Broadcasting
                  System Inc., Cl. A+ ..........          20,000           9,890
    50,000      Television Broadcasting Ltd. ...         187,673         216,726
    25,000      Television Francaise 1 .........         249,649         631,945
    50,000      Tokyo Broadcasting
                  System Inc. ..................         727,119         759,194
    15,000      TV Azteca, SA de C.V.+ .........          95,250         101,850
    25,000      Ulster Television plc ..........         100,374         119,526
     1,000      Wink Communications Inc.+ ......           2,940           1,600
    51,000      Young Broadcasting Inc.,
                  Cl. A+ .......................       1,475,410         915,450
                                                      ----------      ----------
                                                      18,231,146      19,228,084
                                                      ----------      ----------
                BUSINESS SERVICES -- 0.9%
    15,000      Carlisle Holdings Ltd.+ ........          78,754          33,000
    50,108      Cendant Corp.+ .................         642,297         982,618
       500      CheckFree Corp.+ ...............           5,520           9,000
     5,282      Compass Group plc ..............          37,648          39,591
     1,000      Convergys Corp.+ ...............          17,738          37,490
     8,000      Donnelley (R.H.) Corp.+ ........         101,139         232,400
    45,000      Key3Media Group Inc.+ ..........         261,000         239,850
       100      SYNAVANT Inc.+ .................              38             400
     2,500      Traffix Inc.+ ..................          12,500          18,125
                                                      ----------      ----------
                                                       1,156,634       1,592,474
                                                      ----------      ----------
                CABLE -- 3.4%
     6,000      Austar United
                  Communications Ltd.+ .........          21,083             845
    46,000      Cablevision Systems Corp.,
                  Cl. A+ .......................       1,067,246       2,182,700
    18,000      Charter Communications
                  Inc., Cl. A+ .................         270,125         295,740
     5,000      Comcast Corp., Cl. A ...........          35,039         180,000
     7,000      Comcast Corp.,
                  Cl. A, Special ...............          53,073         252,000
    12,000      Mediacom
                  Communications Corp.+ ........          98,625         219,120
    10,000      Mercom Inc. (a)+ ...............         101,075         120,000
   100,000      Rainbow Media Group+ ...........       1,882,858       2,470,000
    22,680      Telewest Communications
                  plc+ .........................          37,551          20,465
    24,500      Telewest Communications
                  plc, ADR+ ....................         358,383         230,055
    42,000      UnitedGlobalCom Inc.,
                  Cl. A+ .......................         257,205         210,000
                                                      ----------      ----------
                                                       4,182,263       6,180,925
                                                      ----------      ----------
                CONSUMER SERVICES -- 0.3%
    40,000      Allied Domecq plc ..............         224,927         237,087
     4,000      Bowlin Travel Centers Inc.+ ....           3,022           5,160
     3,000      Hotel Reservations Inc.,
                  Cl. A+ .......................          48,000         138,000
     6,000      Ticketmaster, Cl. B+ ...........          74,527          98,340
     4,000      TiVo Inc.+ .....................          27,943          26,200
                                                      ----------      ----------
                                                         378,419         504,787
                                                      ----------      ----------

                 See accompanying notes to financial statements.

                                       13
<PAGE>

                    THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
                      PORTFOLIO OF INVESTMENTS (CONTINUED)
                                DECEMBER 31, 2001

                                                                          MARKET
    SHARES                                                  COST           VALUE
    ------                                                  ----          ------

                COMMON STOCKS (CONTINUED)
                DISTRIBUTION COMPANIES (CONTINUED)
                ENERGY AND UTILITIES -- 0.4%
    50,000      El Paso Electric Co.+ ..........      $  396,002      $  725,000
                                                      ----------      ----------
                ENTERTAINMENT DISTRIBUTION -- 8.8%
     6,000      AMC Entertainment Inc.+ ........          11,737          72,000
    50,000      AOL Time Warner Inc.+ ..........         712,698       1,605,000
     6,000      Blockbuster Inc., Cl. A ........          62,925         151,200
   100,000      GC Companies Inc.+ .............         241,092          23,000
     1,500      Liberty Digital Inc.+ ..........           7,873           5,190
   680,000      Liberty Media Corp., Cl. A+ ....       2,375,460       9,520,000
    39,000      Shaw Communications Inc.,
                  Cl. B ........................         105,571         825,317
    11,000      Shaw Communications Inc.,
                  Cl. B, Non-Voting ............         103,451         233,200
    26,100      Vivendi Universal SA+ ..........       1,112,375       1,429,188
    38,000      Vivendi Universal SA, ADR ......       2,374,355       2,044,020
                                                      ----------      ----------
                                                       7,107,537      15,908,115
                                                      ----------      ----------
                EQUIPMENT -- 2.5%
    25,000      Agere Systems Inc., Cl. A+ .....         153,250         142,250
    35,000      Allen Telecom Inc.+ ............         247,869         297,500
     2,000      Amphenol Corp., Cl. A+ .........          31,075          96,100
       416      Avaya Inc.+ ....................           9,760           5,054
     2,000      CommScope Inc.+ ................          29,407          42,540
    84,000      Corning Inc. ...................         957,712         749,280
     1,000      Furukawa Electric Co. Ltd. .....          15,169           5,310
     7,700      Hutchison Whampoa Ltd. .........          71,267          74,306
     2,500      L-3 Communications
                  Holdings Inc.+ ...............          55,000         225,000
    80,000      Lucent Technologies Inc.+ ......         589,543         503,200
    50,000      Motorola Inc. ..................         868,755         751,000
    25,000      Nortel Networks Corp. ..........         147,350         187,500
    70,000      Oak Technology Inc.+ ...........         255,500         962,500
     3,570      Philips Electronics NV, ADR ....          29,368         103,923
     6,000      Qualcomm Inc.+ .................          31,219         303,000
     6,000      Scientific-Atlanta Inc. ........          50,804         143,640
                                                      ----------      ----------
                                                       3,543,048       4,592,103
                                                      ----------      ----------
                INTERNATIONAL TELEPHONE-- 6.4%
    42,000      BCE Inc. .......................         870,637         957,600
    10,000      BT Group plc, ADR+ .............         428,060         367,500
    36,203      Cable & Wireless plc, ADR ......         701,249         536,166
    27,000      Compania de
                  Telecomunicaciones
                  de Chile SA, ADR .............         490,841         363,420
   174,082      Deutsche Telekom
                  AG, ADR ......................       1,319,282       2,941,986
    10,000      Embratel Participacoes
                  SA, ADR+ .....................         210,605          41,600
     3,000      France Telecom SA, ADR .........         102,503         119,970
       174      Japan Telecom Co. Ltd. .........         266,848         521,761
       500      Magyar Tavkozlesi Rt, ADR ......           9,650           8,495
        20      Nippon Telegraph &
                  Telephone Corp. ..............         123,433          65,161
    37,400      Philippine Long Distance
                Telephone Co., ADR .............         732,469         308,176
     6,000      PT Indosat Tbk, ADR ............          58,079          53,100
     4,320      PT Telekomunikasi
                  Indonesia, ADR ...............          18,513          25,056
     5,000      Rostelecom, ADR ................          33,878          26,150
    12,000      Sonera Oyj .....................          51,072          60,795
    40,000      Swisscom AG, ADR ...............       1,153,870       1,110,000
     3,000      Telecom Argentina Stet
                  France Telecom SA, ADR .......          19,650          19,560
<PAGE>

                                                                          MARKET
    SHARES                                                  COST           VALUE
    ------                                                  ----          ------
     2,000      Telecom Corp. of
                  New Zealand Ltd., ADR ........      $   31,000      $   33,500
    56,145      Telefonica SA, ADR+ ............       1,597,471       2,250,292
    19,000      Telefonos de Mexico SA,
                  Cl. L, ADR ...................         177,884         665,380
     2,400      Telstra Corp. Ltd., ADR ........          30,324          33,480
    45,000      TELUS Corp. ....................         810,821         683,629
    27,000      TELUS Corp., Non-Voting ........         575,274         393,263
                                                      ----------      ----------
                                                       9,813,413      11,586,040
                                                      ----------      ----------
                SATELLITE -- 1.7%
       300      Asia Satellite
                  Telecommunications
                  Holdings Ltd., ADR ...........           5,693           4,920
     2,100      British Sky Broadcasting
                  Group, ADR ...................          56,080         137,550
    28,000      EchoStar Communications
                  Corp., Cl. A+ ................          91,970         769,160
    60,000      General Motors Corp., Cl. H+ ...       1,231,629         927,000
    41,000      Liberty Satellite &
                  Technology Inc., Cl. A+ ......         331,246          38,540
    15,000      Lockheed Martin Corp. ..........         431,680         700,050
    30,008      Loral Space &
                  Communications Ltd.+ .........          90,825          89,724
    46,400      Pegasus
                  Communications Corp.+ ........         511,522         483,024
                                                      ----------      ----------
                                                       2,750,645       3,149,968
                                                      ----------      ----------
                TELECOMMUNICATIONS -- 8.2%
     4,266      Aliant Inc. ....................          39,187          80,121
     3,000      Allegiance Telecom Inc.+ .......          28,500          24,870
    10,000      ALLTEL Corp. ...................         498,506         617,300
     4,000      Brasil Telecom
                  Participacoes SA, ADR ........         231,475         165,920
    90,000      Broadwing Inc.+ ................       1,039,227         855,000
    47,000      CenturyTel Inc. ................         803,040       1,541,600
     2,000      Choice One
                  Communications Inc.+ .........          12,260           7,000
    93,000      Citizens Communications Co.+ ...       1,047,108         991,380
    80,000      CoreComm Ltd.+ .................          21,200          12,792
    25,000      Electric Lightwave Inc.,
                  Cl. A+ .......................          28,250           7,500
    20,500      Elisa Communications Oyj,
                  Cl. A ........................         271,577         248,420
    13,000      Global Crossing Ltd.+ ..........          21,840          10,920
     1,305      Hellenic Telecommunications
                  Organization SA ..............          18,163          21,263
    24,000      Jasmine International
                  Public Co. Ltd.+ .............           5,040           4,341
     1,000      Jazztel plc, ADR+ ..............           3,750           5,600
     3,000      Metromedia International
                  Group Inc.+ ..................           8,775           2,430
    35,646      Qwest Communications
                  International Inc. ...........       1,062,864         503,678
    15,000      RCN Corp.+ .....................         132,024          43,950
     9,655      Rogers Communications
                  Inc., Cl. B+ .................         148,207         164,036
   120,345      Rogers Communications
                  Inc., Cl. B, ADR+ ............       1,077,724       2,021,796
    10,000      TALK America
                  Holdings Inc.+ ...............          17,431           4,100
    78,000      Telephone & Data
                  Systems Inc. .................       5,218,920       7,000,500
     6,000      Time Warner Telecom Inc.,
                  Cl. A+ .......................          62,720         106,140

                See accompanying notes to financial statements.

                                        14
                                     <PAGE>

                    THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
                      PORTFOLIO OF INVESTMENTS (CONTINUED)
                                DECEMBER 31, 2001

                                                                          MARKET
    SHARES                                                  COST           VALUE
    ------                                                  ----          ------

                COMMON STOCKS (CONTINUED)
                DISTRIBUTION COMPANIES (CONTINUED)
                TELECOMMUNICATIONS (CONTINUED)
     3,000      USN Communications Inc.+ .......      $   12,165      $        9
    32,000      WorldCom Inc. - MCI Group ......         562,443         406,400
    10,000      WorldCom Inc. - WorldCom
                  Group+ .......................         166,161         140,800
                                                      ----------      ----------
                                                      12,538,557      14,987,866
                                                      ----------      ----------
                TELECOMMUNICATIONS: LONG DISTANCE -- 1.3%
   100,000      AT&T Corp. .....................       1,734,531       1,814,000
    25,000      Sprint Corp. - FON Group .......         404,122         502,000
     1,000      Startec Global
                  Communications Corp.+ ........           4,646              40
                                                      ----------      ----------
                                                       2,143,299       2,316,040
                                                      ----------      ----------
                U.S. REGIONAL OPERATORS -- 2.3%
    24,434      Commonwealth Telephone
                  Enterprises Inc.+ ............         528,513       1,111,747
    24,400      Commonwealth Telephone
                  Enterprises Inc., Cl. B+ .....         318,107       1,072,380
     5,000      SBC Communications Inc. ........         112,521         195,850
    37,000      Verizon Communications .........       1,413,730       1,756,020
                                                      ----------      ----------
                                                       2,372,871       4,135,997
                                                      ----------      ----------
                WIRELESS COMMUNICATIONS -- 6.4%
    35,000      America Movil, SA de CV,
                  Cl. L, ADR+ ..................         444,579         681,800
    52,747      AT&T Wireless
                  Services Inc.+ ...............         929,301         757,974
    15,000      Leap Wireless
                 International Inc.+ ...........         164,200         314,550
    10,000      mm02 plc, ADR+ .................         123,777         126,000
   122,894      Nextel Communications Inc.,
                  Cl. A+ .......................       1,965,072       1,346,918
       100      NTT DoCoMo Inc.+ ...............         762,806       1,175,035
    30,000      Price Communications Corp.+ ....         293,906         572,700
   110,000      Rogers Wireless
                  Communications Inc., Cl. B+1,          530,583       1,600,500
    12,200      Rural Cellular Corp., Cl. A+ ...         134,887         271,450
    38,680      SK Telecom Co. Ltd., ADR .......         380,367         836,262
    20,000      Sprint Corp. - PCS Group+ ......         540,888         488,200
     1,650      Tele Celular Sul
                  Participacoes SA, ADR ........          26,379          26,977
     5,500      Tele Centro Oeste Celular
                  Participacoes SA, ADR ........          16,487          38,500
       330      Tele Leste Celular
                  Participacoes SA, ADR+ .......           8,827           6,748
       825      Tele Nordeste Celular
                  Participacoes SA, ADR ........          12,175          23,257
       330      Tele Norte Celular
                  Participacoes SA, ADR ........           5,098           7,544
    18,432      Tele Norte Leste
                  Participacoes SA, ADR ........         252,380         288,092
   380,000      Telecom Italia Mobile SpA ......         861,292       2,121,412

                                                                          MARKET
    SHARES                                                  COST           VALUE
    ------                                                  ----          ------
       825      Telemig Celular
                  Participacoes SA, ADR ........      $   23,843      $   31,037
     6,600      Telesp Celular
                  Participacoes SA, ADR ........         211,036          61,116
    10,000      Total Access
                  Communications plc+ ..........          63,125          14,200
     2,000      United States Cellular Corp.+ ..         113,480          90,500
     6,000      Vimpel-Communications,
                  ADR+ .........................         103,613         156,300
    12,650      Vodafone Group plc, ADR ........         203,637         324,852
    26,000      Vodafone Libertel NV+ ..........         268,172         239,137
     2,000      Western Wireless Corp.,
                  Cl. A+                                  19,810          56,500
                                                      ----------      ----------
                                                       9,459,720      11,657,561
                                                      ----------      ----------
                TOTAL DISTRIBUTION
                  COMPANIES ....................      74,073,554      96,564,960
                                                      ----------      ----------
                TOTAL COMMON
                  STOCKS .......................     123,962,602     158,407,709
                                                      ----------      ----------

                PREFERRED STOCKS -- 2.7%
                BROADCASTING -- 0.2%
     1,000      Granite Broadcasting Corp.
                  12.750% Cv. Pfd. .............         410,000         400,000
                                                      ----------      ----------
                GLOBAL MEDIA AND ENTERTAINMENT -- 1.5%
   105,201      News Corp. Ltd., Pfd., ADR .....       2,611,792       2,783,618
                                                      ----------      ----------
                U.S. REGIONAL OPERATORS -- 1.0%
    40,000      Citizens Communications Co.
                  5.000% Cv. Pfd. ..............       1,914,412       1,780,000
                                                      ----------      ----------
                TOTAL PREFERRED
                  STOCKS .......................       4,936,204       4,963,618
                                                      ----------      ----------
 PRINCIPAL
  AMOUNT
----------

                CORPORATE BONDS -- 0.3%
                BUSINESS SERVICES -- 0.2%
  $ 50,000      BBN Corp., Sub. Deb. Cv
                  6.000%, 04/01/12(a) ..........          49,449          48,375
   300,000      Trans-Lux Corp., Sub. Deb. Cv.
                  7.500%, 12/01/06 .............         285,895         259,500
                                                      ----------      ----------
                                                         335,344         307,875
                                                      ----------      ----------
                DIVERSIFIED PUBLISHERS -- 0.0%
    66,560      Golden Books Family
                  Entertainment Inc., PIK
                  10.750%, 12/31/04 ............          59,865           4,992
                                                      ----------      ----------
                GLOBAL MEDIA AND ENTERTAINMENT -- 0.0%
    20,000      Boston Celtics L.P., Sub. Deb. Cv.
                  6.000%, 06/30/38 .............          12,237          12,600
                                                      ----------      ----------
                HOTELS AND GAMING -- 0.1%
   300,000      Hilton Hotels Corp., Sub. Deb. Cv.
                  5.000%, 05/15/06 .............         249,782         267,000
                                                      ----------      ----------
                TOTAL CORPORATE
                  BONDS ........................         657,228         592,467
                                                      ----------      ----------

                See accompanying notes to financial statements.

                                       15
<PAGE>
                    THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
                      PORTFOLIO OF INVESTMENTS (CONTINUED)
                                DECEMBER 31, 2001
  PRINCIPAL                                                               MARKET
   AMOUNT                                                   COST           VALUE
   ------                                                   ----          ------
                U.S. GOVERNMENT OBLIGATIONS -- 9.4%
$17,123,000     U.S. Treasury Bills,
                  1.630% to 1.790%++,
                  01/03/02 to 03/28/02 .........    $ 17,066,193   $  17,067,825
                                                     -----------     -----------

TOTAL INVESTMENTS -- 99.7% ......................   $146,622,227     181,031,619
                                                    ============

OTHER ASSETS, LIABILITIES,
  AND LIQUIDATION VALUE OF
  CUMULATIVE PREFERRED STOCK -- (16.7)% .........................   (30,360,071)
                                                                    -----------

NET ASSETS -- COMMON STOCK -- 83.0%
  (14,315,653 common shares outstanding) ........................    150,671,548
                                                                     -----------

NET ASSETS -- PREFERRED STOCK -- 17.0%
  (1,234,700 preferred shares outstanding) ......................     30,867,500
                                                                     -----------

TOTAL NET ASSETS -- 100.0% ......................................  $ 181,539,048
                                                                    ============
NET ASSET VALUE PER COMMON SHARE
   (150,671,548 / 14,315,653 shares outstanding) ................         $10.52
                                                                          ======

  -------------
             For Federal tax purposes:
             Aggregate cost .....................................  $151,080,601
                                                                    ===========
             Gross unrealized appreciation ......................  $ 42,584,935
             Gross unrealized depreciation ......................   (12,633,917)
                                                                    -----------
             Net unrealized appreciation on investments .........  $ 29,951,018
                                                                    ===========

  PRINCIPAL                                                               MARKET
   AMOUNT                                                   COST           VALUE
   ------                                                   ----          ------
FORWARD FOREIGN EXCHANGE CONTRACTS -- 0.0%
  4,718,000(b)  Deliver Hong Kong Dollars
                  in exchange for
                  USD 604,701 ..................    08/01/02               $196
                                                                           ====

  -------------
(a) Security fair valued under procedures established by the Board of Directors.
(b) Principal amount denoted in Hong Kong Dollars.
+   Non-income producing security.
++  Represents annualized yield at date of purchase.
ADR - American Depositary Receipt
PIK - Paid in Kind
USD - U.S. Dollars
                                                           % OF
                                                          MARKET        MARKET
                                                           VALUE         VALUE
                                                          ------        ------
        GEOGRAPHIC DIVERSIFICATION
        United States ..................................    74.6%  $135,004,020
        Europe .........................................    10.8     19,648,640
        Asia/Pacific Rim ...............................     5.6     10,204,303
        Latin America ..................................     4.8      8,638,621
        Canada .........................................     4.2      7,536,035
                                                            ====   ============
        Total Investments ..............................   100.0%  $181,031,619
                                                           =====   ============

                See accompanying notes to financial statements.

                                       16
<PAGE>


                    THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
                      STATEMENT OF ASSETS AND LIABILITIES
                               DECEMBER 31, 2001

ASSETS:
   Investments, at value (Cost $146,622,227) ...................   $181,031,619
   Cash ........................................................          1,025
   Dividends and interest receivable ...........................        159,851
   Receivable for investments sold .............................      4,418,722
   Unrealized appreciation on forward foreign
      exchange contract ........................................            196
   Other assets ................................................          4,016
                                                                   ------------
   TOTAL ASSETS ................................................    185,615,429
                                                                   ------------
LIABILITIES:
   Payable for investments purchased ...........................      3,626,400
   Dividends payable ...........................................         40,745
   Payable for investment advisory fees ........................        120,429
   Other accrued expenses and liabilities ......................        288,807
                                                                   ------------
   TOTAL LIABILITIES ...........................................      4,076,381
                                                                   ------------
   NET ASSETS ..................................................   $181,539,048
                                                                   ============
NET ASSETS CONSIST OF:
   Cumulative  Preferred  Stock (7.92%,  $25.00
     liquidation  value,  $0.001 par
     value, 2,000,000 shares authorized with
     1,234,700 shares issued and outstanding) ..................   $ 30,867,500
   Capital stock, at par value .................................         14,316
   Additional paid-in capital ..................................    120,701,107
   Accumulated net realized loss on investments
      and foreign currency transactions ........................     (4,453,511)
   Net unrealized appreciation on investments
      and foreign currency transactions ........................     34,409,636
                                                                   ------------
   TOTAL NET ASSETS ............................................   $181,539,048
                                                                   ============
   NET ASSET VALUE PER COMMON SHARE
      ($150,671,548 / 14,315,653 shares outstanding;
      200,000,000 shares authorized of $0.001 par value)                 $10.52
                                                                         ======

                             STATEMENT OF OPERATIONS
                      FOR THE YEAR ENDED DECEMBER 31, 2001

INVESTMENT INCOME:
   Dividends (net of foreign taxes of $ 72,826) ................   $  1,414,316
   Interest ....................................................        479,222
                                                                   ------------
   TOTAL INVESTMENT INCOME .....................................      1,893,538
                                                                   ------------
EXPENSES:
   Investment advisory fees ....................................      1,575,795
   Payroll .....................................................        210,000
   Shareholder communications expenses .........................        183,477
   Directors' fees .............................................         62,440
   Shareholder services fees ...................................         59,580
   Custodian fees ..............................................         50,986
   Miscellaneous expenses ......................................         52,109
                                                                   ------------
   TOTAL EXPENSES ..............................................      2,194,387
                                                                   ------------
   NET INVESTMENT LOSS .........................................       (300,849)
                                                                   ------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
   INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS:
   Net realized loss on investments ............................     (1,611,309)
   Net realized loss on foreign currency transactions ..........        (43,748)
                                                                   ------------
   Net realized loss on investments
      and foreign currency transactions ........................     (1,655,057)
                                                                   ------------
   Net change in net unrealized appreciation/
      depreciation on investments and
      foreign currency transactions ............................    (18,935,914)
                                                                   ------------
   NET REALIZED AND UNREALIZED LOSS
      ON INVESTMENTS AND FOREIGN
      CURRENCY TRANSACTIONS ....................................    (20,590,971)
                                                                   ------------
   NET DECREASE IN NET ASSETS RESULTING
      FROM OPERATIONS ..........................................   $(20,891,820)
                                                                   ============

                       STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
                                                                                           YEAR ENDED            YEAR ENDED
                                                                                        DECEMBER 31, 2001     DECEMBER 31, 2000
                                                                                        -----------------     -----------------
<S>                                                                                       <C>                   <C>
OPERATIONS:
   Net investment income (loss) ......................................................   $   (300,849)         $  2,911,908
   Net realized gain/(loss) on investments and foreign currency transactions .........     (1,655,057)           21,965,580
   Net change in unrealized appreciation/depreciation on investments and
      foreign currency transactions ..................................................    (18,935,914)          (85,687,996)
                                                                                         ------------          ------------
   NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS ..............................    (20,891,820)          (60,810,508)
                                                                                         ------------          ------------
DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:
   Net investment income .............................................................        (83,073)           (2,345,263)
   Net realized short-term gain on investments and foreign currency transactions .....       (152,037)           (2,890,872)
   Net realized long-term gain on investments and foreign currency transactions ......       (630,744)          (17,127,338)
                                                                                         ------------          ------------
   TOTAL DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS ..................................       (865,854)          (22,363,473)
                                                                                         ------------          ------------
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
   Net investment income .............................................................             --              (265,608)
   Net realized long-term gain on investments and foreign currency transactions ......     (2,444,706)           (2,180,583)
                                                                                         ------------          ------------
   TOTAL DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS ...............................     (2,444,706)           (2,446,191)
                                                                                         ------------          ------------
TRUST SHARE TRANSACTIONS:
   Net increase from common shares issued in rights offering .........................             --            46,341,194
   Net decrease from repurchase of common shares .....................................       (152,030)             (959,162)
   Net decrease from repurchase of preferred stock ...................................             --              (356,369)
                                                                                         ------------          ------------
   NET INCREASE (DECREASE) IN NET ASSETS FROM TRUST SHARE TRANSACTIONS ...............       (152,030)           45,025,663
                                                                                         ------------          ------------
   NET DECREASE IN NET ASSETS ........................................................    (24,354,410)          (40,594,509)
NET ASSETS:
   Beginning of period ...............................................................    205,893,458           246,487,967
                                                                                         ------------          ------------
   End of period (including undistributed net investment income
      of $0 and $83,073, respectively) ...............................................   $181,539,048          $205,893,458
                                                                                         ============          ============
</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  on March 31,  1994 and  registered  under the  Investment
Company Act of 1940,  as amended (the "1940 Act"),  whose  primary  objective is
long-term growth of capital with income as a secondary objective. The Multimedia
Trust had no  operations  prior to  November  15,  1994,  other than the sale of
10,000 shares of common stock for $100,000 to The Gabelli Equity Trust Inc. (the
"Equity Trust"). Investment operations commenced on November 15, 1994.

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  in  the  U.S.
over-the-counter  market for which market  quotations are readily  available are
valued at the last quoted sale price on that  exchange or market 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 the 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.  If no bid or asked  prices are
quoted on such day, the security is valued at the most recently  available price
or, if the Board of Directors so  determines,  by such other method as the Board
of Directors  shall  determine in good faith,  to reflect its fair market value.
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"). Portfolio securities primarily
traded in foreign markets are generally  valued at the preceding  closing values
of such  securities on their  respective  exchanges or markets.  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 Board of Directors  determines  such does not reflect the  securities
fair value, in which case these securities will be valued at their fair value as
determined by the Board of Directors. Debt instruments having a maturity greater
than 60 days for which market quotations are readily available are valued at the
latest average of the bid and asked prices. If there were no asked prices quoted
on such day,  the  security  is valued  using the closing bid price on that day.
Options  are  valued at the last sale  price on the  exchange  on which they are
listed.  If no sales of such  options  have taken  place that day,  they will be
valued at the mean between their closing bid and asked prices.

      REPURCHASE  AGREEMENTS.  The  Multimedia  Trust may enter into  repurchase
agreements with primary government  securities dealers recognized by the Federal
Reserve  Bank of New York,  with member banks of the Federal  Reserve  System or
with other  brokers or dealers that meet credit  guidelines  established  by the
Adviser  and  reviewed by the Board of  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.

      SECURITIES SOLD SHORT. A short sale involves  selling a security which the
Multimedia  Trust  does not own.  The  proceeds  received  for  short  sales are
recorded as liabilities  and the Multimedia  Trust 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  Multimedia  Trust
records a  realized  gain or loss  when the short  position  is closed  out.  By
entering  into a short sale,  the  Multimedia  Trust 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 Multimedia Trust 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  exchange  contracts  for hedging a specific  transaction  with
respect  to either the  currency  in which the  transaction  is  denominated  or
another currency as deemed

                                       18
<PAGE>

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

appropriate by the Adviser.   Forward foreign  exchange  contracts are valued at
the forward 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  portfolio
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/(loss)  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  TRANSLATION.  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 at the exchange
rate prevailing on the respective dates of such  transactions.  Unrealized gains
and losses,  which result from changes in foreign  exchange rates and/or 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) on investments.

      SECURITIES TRANSACTIONS AND INVESTMENT INCOME. Securities transactions are
accounted  for as of 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. Distributions to shareholders
are recorded on the  ex-dividend  date.  Distributions  to  shareholders  of the
Multimedia  Trust's 7.92%  Cumulative  Preferred  Stock  ("Cumulative  Preferred
Stock") are accrued on a daily basis and are  determined as described in Note 5.
Income distributions and capital gain distributions are determined in accordance
with Federal income tax regulations which may differ from accounting  principles
generally accepted in the United States.

      For the year  ended  December  31,  2001,  reclassifications  were made to
decrease  accumulated net investment loss for $300,849 and decrease  accumulated
net realized loss on investments and foreign  currency  transactions for $43,748
with an offsetting adjustment to additional paid-in capital.

      For the  fiscal  year  ended  December  31,  2001,  the tax  character  of
distributions  paid  does  not  materially  differ  from  accounting  principles
generally accepted in the United States.

      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.

      As of December 31, 2001, the  components of accumulated  earnings/(losses)
on a tax basis were as follows:

           Undistributed long term capital gains                $       4,863
           Net unrealized appreciation                             29,951,262
                                                                -------------
           Total accumulated earnings                           $  29,956,125
                                                                =============

      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.

                                       19
<PAGE>


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


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 business day of each month a fee for the previous month equal on an annual
basis to 1.00% of the value of the Multimedia Trust's average weekly net assets.
In accordance  with the Advisory  Agreement,  the Adviser  provides a continuous
investment  program  for the  Multimedia  Trust's  portfolio  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 Cumulative  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 Cumulative Preferred Stock. For the year ended December 31,
2001, the  Multimedia  Trust's total return on the net asset value of the common
shares  did not  exceed the stated  dividend  rate of the  Cumulative  Preferred
Stock. Thus, such management fees were not earned on the incremental assets.

      During the year ended December 30, 2001,  Gabelli & Company,  Inc. and its
affiliates  received $103,084 in brokerage  commissions as a result of executing
agency transactions in portfolio securities on behalf of the Multimedia Trust.

4.  PORTFOLIO  SECURITIES.   Cost  of  purchases  and  proceeds  from  sales  of
securities,  other than short-term  securities,  for the year ended December 31,
2001 aggregated $46,487,727 and $51,269,814, respectively.

5.  CAPITAL.  The Articles of  Incorporation,  dated March 31, 1994,  permit the
Multimedia Trust to issue 200,000,000 shares of common stock (par value $0.001).
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.
During the year ended December 31, 2001, the Multimedia Trust repurchased 24,200
shares  of its  common  stock in the open  market at a cost of  $152,030  and an
average  discount of approximately  12.76% from its net asset value.  During the
year ended December 31, 2000, the Multimedia Trust repurchased  72,400 shares of
its  common  stock in the  open  market  at a cost of  $959,162  and an  average
discount of approximately  17.51% from its net asset value. All shares of common
stock repurchased have been retired.

      On June 19, 2000, the Multimedia Trust distributed one transferable  right
for each of the 10,796,814  common shares  outstanding to shareholders of record
on that date. Three rights were required to purchase one additional common share
at the subscription  price of $13.00 per share. The subscription  period expired
on July 26,  2000.  The rights  offering was fully  subscribed  resulting in the
issuance  of  3,598,938  common  shares  and  proceeds  of  $46,786,194  to  the
Multimedia Trust, prior to the deduction of estimated expenses of $445,000.

      The net asset value per share of the Multimedia Trust common  shareholders
was reduced by approximately $1.35 per share as a result of the issuance.

      Transactions in capital stock were as follows:

<TABLE>
<CAPTION>
                                                                    YEAR ENDED                       YEAR ENDED
                                                                 DECEMBER 31, 2001                DECEMBER 31, 2000
                                                              --------------------             --------------------
                                                              Shares        Amount             Shares        Amount
                                                              ------        ------             ------        ------
<S>                                                          <C>          <C>                <C>          <C>
Net increase from common shares issued in rights offering ..      --     $      --           3,598,938    $46,341,194
Net decrease from repurchase of common shares .............. (24,200)     (152,030)            (72,400)      (959,162)
                                                             -------     ---------           ---------    ------------
Net increase (decrease) .................................... (24,200)    $(152,030)          3,526,538    $45,382,032
                                                             =======     =========           =========    ============
</TABLE>

      The Multimedia Trust's Articles of Incorporation authorize the issuance of
up to  2,000,000  shares of $0.001 par value  Cumulative  Preferred  Stock.  The
Cumulative  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
Cumulative  Preferred Stock are cumulative.  The Multimedia Trust is required to
meet certain asset coverage tests as required by the 1940 Act and by the shares'
Articles  Supplementary  with respect to the Cumulative  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
Cumulative  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

                                       20
<PAGE>

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

Cumulative  Preferred Stock in whole or in part at the redemption price.  During
the year ended December 31, 2001,  the  Multimedia  Trust did not repurchase any
shares of Cumulative  Preferred Stock.  During the year ended December 31, 2000,
the Multimedia Trust repurchased 15,300 shares of Cumulative  Preferred Stock at
a cost of $356,369 and at an average price of $23.29 per share.  At December 31,
2001, 1,234,700 shares of the Cumulative Preferred Stock were outstanding at the
fixed dividend rate of 7.92 percent per share and accrued dividends  amounted to
$40,745.  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 Cumulative 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 a majority of the holders of common
stock,  approval  of a  majority  of the  holders of any  outstanding  shares of
Cumulative  Preferred Stock,  voting separately as a class, would be required to
(a) adopt any plan of reorganization  that would adversely affect the Cumulative
Preferred Stock,  and (b) take any action requiring a vote of security  holders,
including,   among   other   things,   changes   in   the   Multimedia   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.

                                       21
<PAGE>

                    THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
                              FINANCIAL HIGHLIGHTS

SELECTED DATA FOR A MULTIMEDIA  TRUST COMMON SHARE  OUTSTANDING  THROUGHOUT EACH
PERIOD:
<TABLE>
<CAPTION>
                                                                                  YEAR ENDED DECEMBER 31,
                                                            -----------------------------------------------------------------
<S>                                                         <C>          <C>        <C>             <C>            <C>
OPERATING PERFORMANCE:                                         2001        2000            1999          1998          1997
                                                               ----        ----            ----          ----          ----
   Net asset value, beginning of period ...............     $  12.21     $  19.90      $    12.20      $   9.91      $   8.10
                                                            --------     --------      ----------      --------      --------
   Net investment income (loss) .......................        (0.02)        0.21           (0.05)        (0.03)         0.01
   Net realized and unrealized gain (loss)
     on investments ...................................        (1.44)       (4.74)          11.54          3.33          2.85
                                                            --------     --------      ----------      --------      --------
   Total from investment operations ...................        (1.46)       (4.53)          11.49          3.30          2.86
                                                            --------     --------      ----------      --------      --------
   Increase (decrease) in net asset value from
     Trust share transactions .........................           --        (1.35)           0.06          0.02          0.06
   Offering expenses charged to capital surplus .......           --        (0.04)             --            --         (0.13)
DISTRIBUTIONS TO COMMON STOCK SHAREHOLDERS:
   Net investment income ..............................        (0.00)(a)    (0.16)             --            --         (0.01)
   Net realized gain on investments ...................        (0.06)       (1.41)          (3.62)        (0.80)        (0.84)
DISTRIBUTIONS TO PREFERRED STOCK SHAREHOLDERS:
   Net investment income ..............................           --        (0.02)             --            --         (0.00)(a)
   Net realized gain on investments ...................        (0.17)       (0.18)          (0.23)        (0.23)        (0.13)
                                                            --------     --------      ----------      --------      --------
   Total distributions ................................        (0.23)       (1.77)          (3.85)        (1.03)        (0.98)
                                                            --------     --------      ----------      --------      --------
   NET ASSET VALUE, END OF PERIOD .....................     $  10.52     $  12.21      $    19.90      $  12.20      $   9.91
                                                            ========     ========      ==========      ========      ========
   Net asset value total return+ ......................       (13.3)%      (24.9)%          96.6%         33.0%         34.4%
                                                            ========     ========      ==========      ========      ========
   Market value, end of period ........................     $   9.01     $  10.31      $    18.75      $  10.94      $   8.75
                                                            ========     ========      ==========      ========      ========
   Total investment return++ ..........................       (12.1)%      (35.0)%         106.6%         35.1%          39.6%
                                                            ========     ========      ==========      ========      ========
RATIOS TO  AVERAGE  NET  ASSETS  AVAILABLE  TO  COMMON
STOCK  SHAREHOLDERS  AND SUPPLEMENTAL DATA:
   Net assets, end of period (in 000's) ...............     $181,539     $205,893      $  246,488      $163,742      $140,416
   Net assets attributable to common shares,
     end of period (in 000's) .........................     $150,672     $175,026      $  215,238      $132,492      $109,166
   Ratio of net investment income (loss) to average
     net assets attributable to common stock ..........        (0.18)%       1.36%          (0.30)%       (0.32)%        0.07%
   Ratio of operating expenses to average
     net assets attributable to common stock ..........         1.34%        1.46%           1.56%         2.53%         2.09%
   Ratio of operating expenses to average
     total net assets (c) .............................         1.13%        1.27%           1.32%         2.01%         1.77%
   Portfolio turnover rate ............................         25.4%        29.9%           43.1%         44.6%         96.1%
PREFERRED STOCK:
   Liquidation value, end of period (in 000's) ........     $ 30,868     $ 30,868      $   31,250      $ 31,250      $ 31,250
   Total shares outstanding (in 000's) ................        1,235        1,235           1,250         1,250         1,250
   Asset coverage .....................................          588%         667%            789%          524%          443%
   Asset coverage per share ...........................     $ 147.03     $ 166.76      $   197.19      $ 112.97      $ 112.33
   Liquidation preference per share ...................     $  25.00     $  25.00      $    25.00      $  25.00      $  25.00
   Average market value (b) ...........................     $  25.50     $  23.54      $    25.13      $  25.96      $  25.59

--------------------------------
<FN>
+  Based  on  net  asset  value  per  share,   adjusted  for   reinvestment   of
distributions,  including  the  effect  of  shares  issued  pursuant  to  rights
offering, assuming full subscription by shareholders.
++ Based on market value per share,  adjusted for reinvestment of distributions,
including the effect of shares issued pursuant to rights offering, assuming full
subscription by shareholders.
(a) Amount  represents  less than $0.005 per share.
(b) Based on weekly prices.
(c) Amounts are attributable to both common and preferred stock assets. Prior to
1997, there was no preferred stock outstanding.
</FN>
</TABLE>

                See accompanying notes to financial statements.
                                       22
<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 "Trust") at December 31, 2001,  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 of  America.  These  financial  statements  and  financial
highlights   (hereafter   referred  to  as  "financial   statements")   are  the
responsibility of the 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 of America,  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, 2001 by  correspondence  with the custodian and brokers,  provide a
reasonable basis for our opinion.

/S/  PricewaterhouseCoopers LLP

1177 Avenue of the Americas
New York,  NY 10036
February 15, 2002


                                       23
<PAGE>


                    THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
                     ADDITIONAL FUND INFORMATION (UNAUDITED)
      The business and affairs of the Trust are managed  under the  direction of
the Trust's  Board of  Directors.  Information  pertaining  to the Directors and
officers of the Trust is set forth below.  The Trust's  Statement of  Additional
Information includes additional  information about The Gabelli Global Multimedia
Trust Inc. Directors and is available,  without charge, upon request, by calling
1-800-GABELLI  (1-800-422-3554)  or by writing to The Gabelli Global  Multimedia
Trust Inc. at One Corporate Center, Rye, NY 10580.

<TABLE>
<CAPTION>

                              TERM OF       NUMBER OF
                            OFFICE AND    FUNDS IN FUND
NAME, POSITION(S)            LENGTH OF       COMPLEX
    ADDRESS1                   TIME        OVERSEEN BY   PRINCIPAL OCCUPATION(S)                            OTHER DIRECTORSHIPS
    AND AGE                   SERVED2       DIRECTOR     DURING PAST FIVE YEARS                               HELD BY DIRECTOR
----------------            ---------      -----------   ----------------------                             -------------------
<S>                         <C>            <C>           <C>                                           <C>
INTERESTED DIRECTORS3:
MARIO J. GABELLI            Since 1994***       21       Chairman of the Board and Chief Executive     Director of Morgan Group
Director, President and                                  Officer of Gabelli Asset Management Inc.      Holdings, Inc. (transporta-
Chief Investment Officer                                 and Chief Investment Officer of Gabelli       tion services); Vice Chairman
Age: 59                                                  Funds, LLC and GAMCO Investors, Inc.;         of Lynch Corporation
                                                         Chairman and Chief Executive Officer of       (diversified manufacturing)
                                                         Lynch Interactive Corporation (multimedia
                                                         and services)

KARL OTTO POHL              Since 1994**        30       Member of the Shareholder Committee of        Director of Gabelli Asset
Director                                                 Sal Oppenheim Jr. & Cie (private invest-      Management Inc. (investment
Age: 72                                                  ment bank); Former President of the           management); Chairman, Incen-
                                                         Deutsche Bundesbank and Chairman of its       tive Capital and Incentive
                                                         Central Bank Council (1980-1991)              Asset Management (Zurich);
                                                                                                       Director at Sal Oppenheim Jr.
                                                                                                       & Cie, Zurich

NON-INTERESTED DIRECTORS:
THOMAS E. BRATTER           Since 1994***        3       Director, President and Founder, The John                    --
Director                                                 Dewey Academy (residential college
Age: 62                                                  preparatory therapeutic high school)

ANTHONY J. COLAVITA4        Since 2001***       32       President and Attorney at Law in the law                     --
Director                                                 firm of Anthony J. Colavita, P.C.
Age: 66

JAMES P. CONN4              Since 1994**        11       Former Managing Director and Chief            Director of LaQuinta Corp.
Director                                                 Investment Officer of Financial Security      (hotels) and First Republic
Age: 64                                                  Assurance Holdings Ltd. (1992-1998)

FRANK J. FAHRENKOPF JR.     Since 1999*         3        President and Chief Executive Officer of the                 --
Director                                                 American Gaming Association since June
Age: 62                                                  1995; Partner of Hogan & Hartson (law
                                                         firm); Chairman of International Trade
                                                         Practice Group; Co-Chairman of the
                                                         Commission on Presidential Debates;
                                                         Former Chairman of the Republican
                                                         National Committee

ANTHONY R. PUSTORINO        Since 1994**        16       Certified Public Accountant; Professor                       --
Director                                                 Emeritus, Pace University
Age: 76

WERNER J. ROEDER, MD        Since 1999*        26        Medical Director of Lawrence Hospital                        --
Director                                                 and practicing private physician
Age: 61

SALVATORE J. ZIZZA          Since 1994*         8        Chairman, Hallmark Electrical Supplies Corp.; Board Member of Hollis
Director                                                 Former Executive Vice President of FMG Group  Eden Pharmaceuticals,
Age: 56                                                  (OTC), a healthcare provider; Former          Bion Environmental
                                                         President and Chief Executive Officer         Technologies Inc.
                                                         of the Lehigh Group Inc., an interior         and The Credit Store Inc.
                                                         construction company, through 1997
</TABLE>

                                       24
<PAGE>


                    THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
               ADDITIONAL FUND INFORMATION (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>

                              TERM OF       NUMBER OF
                            OFFICE AND    FUNDS IN FUND
NAME, POSITION(S)            LENGTH OF       COMPLEX
    ADDRESS1                   TIME        OVERSEEN BY   PRINCIPAL OCCUPATION(S)                            OTHER DIRECTORSHIPS
    AND AGE                   SERVED2       DIRECTOR     DURING PAST FIVE YEARS                               HELD BY DIRECTOR
----------------            ---------      -----------   ----------------------                             -------------------
<S>                         <C>            <C>           <C>                                           <C>
OFFICERS:
BRUCE N. ALPERT             Since 1994          --       Executive Vice President and Chief Operating                 --
Vice President and                                       Officer of Gabelli Funds, LLC since 1988 and
Treasurer                                                an officer of all mutual funds advised by
Age: 50                                                  Gabelli Funds, LLC and its affiliates
                                                         Director and President of the Gabelli
                                                         Advisors, Inc.

PETER W. LATARTARA          Since 1998          --       Vice President of the Trust since 1998.                      --
Vice President                                           Vice President of Gabelli & Company, Inc.
Age: 34                                                  since 1996.

BRANDON J. MCCUE            Since 2000          --       Vice President of the Trust since 2000.                      --
Vice President                                           Prior to 2000, Mr. McCue was with the
Age: 32                                                  executive search firm of Robert Half
                                                         International from 1999 to 2000 and
                                                         President of Market Place Florists, Inc.
                                                         (a specialty retail enterprise) from 1993
                                                         to 1999

JAMES E. MCKEE              Since 1995          --       Vice President, General Counsel and Secretary                --
Secretary                                                of Gabelli Asset Management Inc. since 1999
Age: 38                                                  and GAMCO Investors, Inc. since 1993; Secretary
                                                         of all mutual funds advised by Gabelli Advisers,
                                                         Inc. and Gabelli Funds, LLC.

--------------------------------------------------------------------------------
<FN>
1 Address: One Corporate Center, Rye, NY 10580, unless otherwise noted.
2 The Trust's  Board of  Directors  is divided  into three  classes,  each class
having a term of three years.  Each year the term of office of one class expires
and the  successor  or  successors  elected to such class serve for a three year
term. The three year term for each class expires as follows:
  * - Term expires at the Trust's 2002 Annual Meeting of Shareholders  and until
their successors are duly elected and qualified.
 ** - Term expires at the Trust's 2003 Annual Meeting of Shareholders  and until
their  successors  are duly  elected and  qualified.
*** - Term expires at the Trust's 2004 Annual Meeting of Shareholders  and until
their successors are duly elected and qualified.
3 "Interested  person" of the Trust as defined in the Investment  Company Act of
1940.  Messrs.  Gabelli  and Pohl are each  considered  an  "interested  person"
because of their  affiliation  with Gabelli Funds, LLC which acts as the Trust's
investment adviser.
4 Represents holders of the Trust's 7.92% Cumulative Preferred Stock.
</FN>
</TABLE>

                                       25
<PAGE>

--------------------------------------------------------------------------------
                      GABELLI GLOBAL MULTIMEDIA TRUST INC.
                            AND YOUR PERSONAL PRIVACY

     WHO ARE WE?
     The Gabelli  Global  Multimedia  Trust Inc.  (the  "Trust") is a closed-end
     investment company  registered with the Securities and Exchange  Commission
     under the  Investment  Company Act of 1940. We are managed by Gabelli Funds
     LLC, which is affiliated with Gabelli Asset  Management Inc.  Gabelli Asset
     Management is a publicly-held  company that has  subsidiaries  that provide
     investment advisory or brokerage services for a variety of clients.

     WHAT KIND OF NON-PUBLIC INFORMATION DO WE COLLECT ABOUT YOU IF YOU BECOME A
     GABELLI CUSTOMER?
     When you purchase shares of the Trust on the New York Stock  Exchange,  you
     have the option of  registering  directly with our transfer agent in order,
     for  example,   to  participate  in  our  dividend   reinvestment  plan.
     o INFORMATION YOU GIVE US ON YOUR APPLICATION FORM. This could include your
     name,  address,  telephone  number,  social security  number,  bank account
     number, and other information.
     o  INFORMATION   ABOUT  YOUR  TRANSACTIONS  WITH  US.  This  would  include
     information  about the  shares  that you buy or sell,  it may also  include
     information  about whether you sell or exercise  rights that we have issued
     from time to time.  If we hire  someone  else to provide  services--like  a
     transfer  agent--we will also have information  about the transactions that
     you conduct through them.

     WHAT INFORMATION DO WE DISCLOSE AND TO WHOM DO WE DISCLOSE IT?
     We do not disclose any non-public personal  information about our customers
     or former  customers  to anyone,  other than our  affiliates,  our  service
     providers who need to know such  information and as otherwise  permitted by
     law. If you want to find out what the law permits, you can read the privacy
     rules adopted by the Securities and Exchange Commission. They are in volume
     17 of the Code of Federal Regulations, Part 248. The Commission often posts
     information about its regulations on its web site, WWW.SEC.GOV.

     WHAT DO WE DO TO PROTECT YOUR PERSONAL INFORMATION?
     We restrict  access to  non-public  personal  information  about you to the
     people who need to know that  information in order to perform their jobs or
     provide  services to you and to ensure that we are complying  with the laws
     governing the securities business.  We maintain physical,  electronic,  and
     procedural safeguards to keep your personal information confidential.
--------------------------------------------------------------------------------

                                       26
<PAGE>


                    THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
                       INCOME TAX INFORMATION (UNAUDITED)
                                DECEMBER 31, 2001

<TABLE>
<CAPTION>

CASH DIVIDENDS AND DISTRIBUTIONS
<S>                            <C>             <C>           <C>               <C>             <C>           <C>
                                                             TOTAL AMOUNT       ORDINARY       LONG-TERM       DIVIDEND
                                PAYABLE         RECORD           PAID          INVESTMENT       CAPITAL      REINVESTMENT
                                 DATE            DATE          PER SHARE         INCOME          GAINS           PRICE
                               --------        --------      ------------      ----------      ---------     ------------

COMMON SHARES
                               03/23/01        03/15/01         $0.0600         $0.0164        $ 0.0436       $10.411186
                                                                -------         -------         -------

PREFERRED SHARES
                               03/26/01        03/19/01         $0.4950           --           $ 0.4950
                               06/25/01        06/18/01          0.4950           --             0.4950
                               09/26/01        09/19/01          0.4950           --             0.4950
                               12/26/01        12/18/01          0.4950           --             0.4950
                                                                -------         ----           --------
                                                                $1.9800           --           $ 1.9800

</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 2001 tax  returns.  Ordinary  income  distributions  include net  investment
income and realized net short-term  capital gains. 100% of the long-term capital
gains paid to common shareholders by the Multimedia Trust in 2001 was classified
as "20% Rate Gains" subject to a maximum tax rate of 20% (or 10% depending on an
individual's tax bracket). 100% of the long-term capital gains paid to preferred
shareholders by the Multimedia Trust in 2001 was classified as "Qualified 5-Year
Gains" and reported in box 2c of Form 1099-DIV.  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
2001.

CORPORATE DIVIDENDS RECEIVED DEDUCTION AND U.S. GOVERNMENT SECURITIES INCOME
    The Multimedia Trust paid to common shareholders an ordinary income dividend
totalling  $0.0164 per share in 2001.  The  percentage  of such  dividends  that
qualifies for the dividends  received  deduction  available to  corporations  is
11.90% for all such  dividends  paid in 2001.  The  percentage  of the  ordinary
income  dividends  paid by the  Multimedia  Trust  during 2001 derived from U.S.
Government  Securities  was  26.91%.  However,  it  should  be  noted  that  the
Multimedia  Trust did not hold more  than 50% of its  assets in U.S.  Government
Securities at the end of each calendar quarter during 2001.

                 HISTORICAL DISTRIBUTION SUMMARY - COMMON STOCK
<TABLE>
<CAPTION>

                                            SHORT-          LONG-
                                             TERM           TERM        NON-TAXABLE                        ADJUSTMENT
                         INVESTMENT         CAPITAL        CAPITAL       RETURN OF          TOTAL              TO
                           INCOME          GAINS(B)         GAINS         CAPITAL       DISTRIBUTIONS      COST BASIS
                         ----------       ---------        --------     -----------     -------------      ----------
<S>                        <C>             <C>             <C>              <C>           <C>               <C>
    2001                   $0.0058         $0.0106         $0.0436          --            $0.0600               --
    2000(a)                 0.1630          0.2088          1.2032          --             1.5750               --
    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(c)                 0.0788          0.1529          0.0183          --             0.2500               --
    1994                    0.0305          0.0010          0.0014        $0.0171          0.0500           $0.0171(d)

                                          HISTORICAL DISTRIBUTION SUMMARY - PREFERRED STOCK

                                            SHORT-          LONG-
                                             TERM           TERM        NON-TAXABLE                        ADJUSTMENT
                         INVESTMENT         CAPITAL        CAPITAL       RETURN OF          TOTAL              TO
                           INCOME          GAINS(B)         GAINS         CAPITAL       DISTRIBUTIONS      COST BASIS
                         ----------       ---------        --------     -----------     -------------      ----------
    2001                     --               --           $1.9800          --            $1.9800                --
    2000                   $0.2150         $0.2390          1.5260          --             1.9800                --
    1999                     --             0.7020          1.2780          --             1.9800                --
    1998                     --             0.4936          1.4864          --             1.9800                --
    1997                    0.0077          0.3523          0.7565          --             1.1165                --

--------------------------
<FN>
(a) On June 19, 2000,  the Company  distributed  Rights  equivalent to $1.46 per
    share based upon full subscription of all issued shares.
(b) Taxable as ordinary income.
(c) On August 11, 1995, the Company  distributed  Rights equivalent to $0.46 per
    share based upon full subscription of all issued shares.
(d) Decrease in cost basis.
</FN>
</TABLE>


                                       27
<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 EquiServe Trust Company  ("EquiServe") 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 EquiServe
                                 P.O. Box 43011
                            Providence, RI 02940-3011

   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  EquiServe  at 1 (800)
336-6983.

   SHAREHOLDERS WISHING TO LIQUIDATE REINVESTED SHARES held at EquiServe 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,  EquiServe will buy Common Stock in the open
market, or on the NYSE or elsewhere, for the participants' accounts, except that
EquiServe 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 EquiServe 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 EquiServe for investments in the Multimedia  Trust's
shares at the then current  market price.  Shareholders  may send an amount from
$250 to $10,000.  EquiServe will use these funds to purchase  shares in the open
market on or about the 1st and 15th of each  month.  EquiServe  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 EquiServe,  P.O. Box 43011,  Providence,  RI
02940-3011  such that  EquiServe  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 EquiServe 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 20, 2002, at The Bruce Museum, One Museum
                        Drive in Greenwich, Connecticut.
--------------------------------------------------------------------------------


                                       28
<PAGE>
                             DIRECTORS AND OFFICERS

                    THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
                    ONE CORPORATE CENTER, RYE, NY 10580-1422

DIRECTORS

Mario J. Gabelli, CFA
  CHAIRMAN AND CHIEF INVESTMENT OFFICER,
  GABELLI ASSET MANAGEMENT INC.

Dr. Thomas E. Bratter
  PRESIDENT, JOHN DEWEY ACADEMY

Anthony J. Colavita
  ATTORNEY-AT-LAW,
  ANTHONY J. COLAVITA, P.C.

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 EMERITUS, PACE UNIVERSITY

Werner J. Roeder, MD
  MEDICAL DIRECTOR, LAWRENCE HOSPITAL

Salvatore J. Zizza
  CHAIRMAN, HALLMARK ELECTRICAL SUPPLIES CORP.

OFFICERS

Mario J. Gabelli, CFA
  PRESIDENT & CHIEF INVESTMENT OFFICER

Bruce N. Alpert
  VICE PRESIDENT & TREASURER

Peter W. Latartara
  VICE PRESIDENT

Brandon J. McCue
  VICE PRESIDENT

James E. McKee
  SECRETARY

INVESTMENT ADVISOR

Gabelli Funds, LLC
One Corporate Center
Rye, New York  10580-1422

CUSTODIAN

State Street Bank and Trust Company

COUNSEL

Willkie Farr & Gallagher

TRANSFER AGENT AND REGISTRAR

EquiServe Trust Company

STOCK EXCHANGE LISTING

                           Common    7.92% Preferred
                           ------    ---------------
NYSE-Symbol:                 GGT         GGT Pr
Shares Outstanding:      14,315,653     1,234,700

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 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: closedend@gabelli.com
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
  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  common  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.
--------------------------------------------------------------------------------

                    THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
                    ONE CORPORATE CENTER, RYE, NY 10580-1422


                      PHONE: 1-800-GABELLI (1-800-422-3554)
                  FAX: 1-914-921-5118 INTERNET: WWW.GABELLI.COM
                          E-MAIL: CLOSEDEND@GABELLI.COM

                                                                  GBFMT-AR-12/01


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