12

                                       
                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549
                             _____________________

                                   FORM 10-Q


(Mark One)
[X]     QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)
          OF THE SECURITIES EXCHANGE ACT OF 1934
          for the quarterly period ended July 31, 1997

[ ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
          OF THE SECURITIES EXCHANGE ACT OF 1934
          for the transition period from __________ to ___________


                        Commission file number 2-53193
                                       
                                       
                            COMPUSERVE CORPORATION
            (Exact name of registrant as specified in its charter)
                                       

                Delaware                             31-1459598
      (State or other jurisdiction of            (I.R.S. Employer
       incorporation or organization)            Identification No.)


                        5000 Arlington Centre Boulevard
                             Columbus, Ohio  43220
         (Address of principal executive offices, including zip code)


                                (614) 457-8600
             (Registrant's telephone number, including area code)



     Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.

Yes  X    No  __

     As of September 3, 1997, the Registrant had outstanding 92,600,000 shares
of common stock.






                               TABLE OF CONTENTS





                                                                      Page
                                                                     ------
PART 1 - FINANCIAL INFORMATION

Item 1.  Financial Statements.

     Consolidated Balance Sheets
          July 31, 1997 (Unaudited) and
          April 30, 1997 (Audited)  ...............................     3

     Consolidated Statements of Operations
          Three Months Ended July 31, 1997 and 1996
          (Unaudited)  ............................................     4

     Consolidated Statements of Cash Flows
          Three Months Ended July 31, 1997 and 1996 (Unaudited)....     5

     Notes to Consolidated Financial Statements (Unaudited)........     6


Item 2.   Management's Discussion and Analysis of Financial
          Condition and Results of Operations......................     8


PART II - OTHER INFORMATION........................................    11


SIGNATURES.........................................................    12




                         COMPUSERVE CORPORATION
                       CONSOLIDATED BALANCE SHEETS
                         (AMOUNTS IN THOUSANDS)
                                                               
                                                  July 31,     April 30,
                                                    1997          1997
                                                -----------    ----------
                                                (Unaudited)    (Audited)
CURRENT ASSETS                                                 
  Cash and cash equivalents                      $133,765       $138,777
  Investments                                      34,250         22,642
  Receivables, net                                110,516        118,336
  Due from parent                                  70,649         70,228
  Other current assets                             39,412         32,833
                                                 ----------    ----------
     TOTAL CURRENT ASSETS                         388,592        382,816
                                                               
INTANGIBLE ASSETS, net                              7,080          8,153
                                                               
PROPERTY AND EQUIPMENT, net                       340,031        355,212
                                                               
OTHER ASSETS                                                   
  Deferred subscriber acquisition costs, net       37,629         43,959
  Other assets                                     13,846         12,396
                                                 ----------     ---------
     TOTAL OTHER ASSETS                            51,475         56,355
                                                 ----------     --------- 
     TOTAL ASSETS                                $787,178       $802,536
                                                 ==========     ========= 

CURRENT LIABILITIES                                            
  Accounts payable                                $44,401        $54,529
  Other current liabilities                        46,175         46,620
  Accrued taxes                                    12,174          8,016
  Deferred revenues                                 6,286          5,824
                                                 ----------     ---------
     TOTAL CURRENT LIABILITIES                    109,036        114,989
                                                               
DEFERRED INCOME TAXES                              31,708         36,111
                                                               
STOCKHOLDERS' EQUITY                              646,434        651,436
                                                 ----------     --------- 
     TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $787,178       $802,536
                                                 ==========     =========
                                                               
                                                               
             SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


                         COMPUSERVE CORPORATION
                  CONSOLIDATED STATEMENTS OF OPERATIONS
   (UNAUDITED, AMOUNTS IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
                                                               
                                                 3 Months Ended July 31,
                                                -------------------------
                                                    1997          1996
                                                -----------    ---------- 
REVENUES                                                       
  Interactive Services revenues                  $124,234       $141,414
  Network Services revenues                        75,375         59,278
  Other revenues                                    6,130          7,950
                                                -----------    ----------
         TOTAL REVENUES                           205,739        208,642
                                                               
COSTS AND EXPENSES                                             
  Costs of revenues                               117,119        139,696
  Marketing                                        44,958         59,031
  General and administrative                       12,522          9,494
  Depreciation and amortization                    29,692         26,853
  Equipment leasing                                 3,895           ----
  Product development                               5,873          7,056
  Nonrecurring items                                 ----         17,713
                                                -----------    ----------
             TOTAL COSTS AND EXPENSES             214,059        259,843
                                                               
OPERATING LOSS                                     (8,320)       (51,201)
                                                               
INTEREST INCOME                                     2,377          3,131
                                                -----------    ---------- 
LOSS BEFORE TAXES                                  (5,943)       (48,070)
                                                               
INCOME TAX BENEFIT                                 (1,857)       (18,455)
                                                -----------    ----------
NET LOSS                                          ($4,086)      ($29,615)
                                                ===========    ==========
 
LOSS PER COMMON SHARE                              ($0.04)        ($0.32)
                                                ===========    ==========

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING      92,600,000     92,600,000  
                                                ===========    ==========     
                                                               
                                                               
             SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS



                         COMPUSERVE CORPORATION
                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                    (UNAUDITED, AMOUNTS IN THOUSANDS)

                                                               
                                                     3 Months Ended July 31,
                                                   -------------------------
                                                       1997         1996
                                                   -----------   -----------   
                                                               
CASH FLOWS FROM OPERATING ACTIVITIES                           
  Net Loss                                           ($4,086)      ($29,615)
  Noncash, nonrecurring items                          -----          7,939
  Depreciation and amortization                       29,692         26,853
  Deferred subscriber acquisition costs              (11,056)       (26,815)
  Amortization of deferred subscriber costs           17,386         19,013
  Provision for deferred taxes                        (4,302)         5,556
  Changes in net working capital                      (5,233)       (45,407)
                                                    ----------    ----------
  Net cash provided/(used) by operating activities    22,401        (42,476)
                                                               
CASH FLOWS FROM INVESTING ACTIVITIES                           
  Purchases of property and equipment                (11,649)       (63,544)
  Purchases of short-term investments                (19,141)      (123,848)
  Maturities of short-term investments                 7,533          3,124
  Other, net                                          (4,156)        (2,537)
                                                    ----------    ----------
  Net cash used by investing activities              (27,413)      (186,805)
                                                    ----------    ----------
NET DECREASE IN CASH AND CASH EQUIVALENTS             (5,012)      (229,281)
                                                               
CASH AND CASH EQUIVALENTS AT BEGINNING OF                      
PERIOD                                               138,777        280,646
                                                    ----------    ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD          $133,765        $51,365
                                                    ==========    ==========
                                                               
                                                               
             SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                            CompuServe Corporation
                  Notes to Consolidated Financial Statements
             (Unaudited, amounts in thousands, except share data)
                                       
                                       

1.   The Consolidated Balance Sheet as of July 31, 1997, the Consolidated
     Statements of Operations for the three month periods ended July 31, 1997
     and 1996, and the Consolidated Statements of Cash Flows for the three
     month periods ended July 31, 1997 and 1996 have been prepared by the
     Company, without audit.  In the opinion of management, all adjustments
     (which include only normal recurring adjustments) necessary to present
     fairly the financial position, results of operations and cash flows at
     July 31, 1997 and for all periods presented have been made.

     Certain information and footnote disclosures normally included in
     financial statements prepared in accordance with generally accepted
     accounting principles have been condensed or omitted.  These consolidated
     financial statements should be read in conjunction with the financial
     statements and notes thereto in the Company's April 30, 1997 Form 10-K/A,
     and are not necessarily indicative of the operating results for the full
     fiscal year.

     Certain reclassifications have been made to the fiscal year 1997 financial
     statements to conform to the presentation used in fiscal year 1998.

2.   CompuServe Corporation ("Company") is a majority-owned (80.1%) subsidiary
     of H&R Block Group, Inc. ("Parent").  Parent is a wholly-owned subsidiary
     of H&R Block, Inc. ("Block").

     On July 16, 1996, Block announced that its Board of Directors had approved
     plans to spin-off (the "Spin-off") Block's 80.1% interest in the Company.
     The Spin-off was subject to, among other things, shareholder approval at
     Block's September 1996 annual meeting and a favorable ruling from the
     Internal Revenue Service as to the tax-free nature of the transaction.

     On  August  28, 1996, Block announced that its Board of Directors  decided
     not  to  present  the  proposed  Spin-off to  shareholders  at  the  Block
     September  11,  1996  annual meeting.  The decision  not  to  present  the
     CompuServe Spin-off for a shareholder vote on September 11 was  based,  in
     part,  on  the Company's reported fiscal 1997 first quarter and  projected
     second  quarter losses, market uncertainties regarding the online industry
     and  the  planned  September 1996 introduction of new interfaces  for  the
     CompuServe Interactive Service ("CSi").

     On April 3, 1997, it was announced that the Company and Parent are engaged
     in external discussions regarding possible business combinations involving
     CompuServe.  There are no assurances that such discussions will result in
     any agreement or transaction.

3.   The Company files consolidated federal and state income tax returns with
     Block on a calendar year basis.  The Consolidated Statements of Operations
     reflect the effective tax rates expected to be applicable for the 
     respective full fiscal years.

4.   During  fiscal 1997, the Company, certain current and former officers  and
     directors of the Company, and Parent were named as defendants in six
     lawsuits pending before the State and Federal courts in Columbus, Ohio. All
     but two of the original six cases were brought as putative class actions. 
     All the suits allege similar violations of the Securities Act of 1933
     based on assertions of omissions and misstatements of fact in connection
     with the Company's public filings related to its initial public offering.
     Relief sought in each suit is unspecified, but includes pleas for
     rescission and damages.  One purported class action lawsuit was
     voluntarily dismissed by the plaintiffs and such plaintiffs have joined in
     one of the remaining class action lawsuits in Federal court.  The other
     Federal lawsuit names the lead underwriters of the Company's initial public
     offering as additional defendants and as representatives of a defendant
     class consisting of all underwriters who participated in such offering.
     The Federal suits are both subject to pending motions to dismiss filed on
     behalf of the defendants, and they are expected to be consolidated
     pursuant to a scheduling order that has been entered in the first Federal
     lawsuit.  The first State court lawsuit also alleges violations of the
     Ohio Securities Code and common law of negligent misrepresentation,
     while another State lawsuit alleges violations of Colorado, Florida, and
     Ohio statutes and common law of negligent misrepresentation in addition
     to the 1933 Act claims.  Three of the State lawsuits have been
     consolidated for discovery.  A fourth State lawsuit was filed within the
     last 30 days, and is expected to be consolidated with the other State
     lawsuits in due course.  The defendants are vigorously defending these
     lawsuits.

     During   fiscal   1997,   TeleTech   Teleservices,   Inc.   and   TeleTech
     Telecommunications,  Inc. (collectively, "TeleTech") commenced  an  action
     in  the  United States District Court, Southern District of  Ohio  against
     CompuServe  Incorporated  for alleged violations  of  certain  outsourcing
     contracts  between TeleTech and CompuServe Incorporated primarily  related
     to  the  WOW! online service.  Teletech seeks recovery under a  liquidated
     damages  provision and other compensatory damages, but has not asserted  a
     specific  amount  to  which it believes it would be entitled.   CompuServe
     Incorporated  has  filed  counterclaims  alleging  multiple  breaches   by
     TeleTech  of  the  outsourcing contracts, including  breach  of  fiduciary
     duty,  breach  of  confidentiality, and  breach  of  the  non-compete  and
     employee  non-solicitation  provisions of  the  outsourcing  contracts  by
     TeleTech.    The  Company  believes  it  has  meritorious   defenses   and
     counterclaims, and is vigorously pursuing this litigation.

     In  July  1997, the Company received an assessment from the German  taxing
     authority related to value-added taxes on the Company's services  provided
     in  Germany.   Management is not able to estimate the amount of  potential
     loss  related  to  this  assessment.   The  Company  believes  that  after
     reviewing such matters and consulting with the Company's counsel that  the
     ultimate  resolution  of  this matter will not  have  a  material  adverse
     effect on the Company's consolidated financial statements.

     The  Company  in  the  ordinary course of business is threatened  with  or
     named  as  a  defendant  in  various lawsuits.   It  is  not  possible  to
     determine  the ultimate disposition of these matters; however,  management
     is  of  the  opinion  that, except for the matters described  herein,  the
     final resolution of any threatened or pending litigation is not likely  to
     have  a  material  adverse  effect  on the  financial  statements  of  the
     Company.


                    MANAGEMENT'S DISCUSSION AND ANALYSIS OF
                 FINANCIAL CONDITION AND RESULTS OF OPERATIONS


FINANCIAL CONDITION

The following discussion should be read in conjunction with the Consolidated
Balance Sheets and Consolidated Statements of Cash Flows appearing elsewhere
herein.

CompuServe obtains cash to fund its working capital and capital requirements
from, among other things, available cash, cash equivalents and investments, and
operating activities.

At July 31, 1997, the Company had cash, cash equivalents and investments
totaling $168.0 million, an increase of $6.6 million from April 30, 1997.  Net
cash provided by operating activities totaled $22.4 million and net cash used
by investing activities totaled $27.4 million (including $11.6 million of net
purchases of short-term investments and  $11.6 million of purchases of property
and equipment).

Investments consist principally of commercial paper, corporate bonds and U.S.
government agency obligations that have maturities of three to twelve months at
date of purchase.  At July 31, 1997, the investment portfolio had an average
131.4 days term to maturity.

Working capital increased to $279.6 million at July 31, 1997 from $267.8
million at April 30, 1997.  The working capital ratio at July 31, 1997 was 3.56
to 1, compared to 3.33 to 1 at April 30, 1997.
     
A portion of the Company's operations are conducted in leased facilities.
During the second quarter of fiscal 1997, the Company initiated an equipment
leasing program.  During the first quarter of fiscal year 1998, equipment with
a cash purchase value of $8.2 million was leased.

In June 1996, the Company agreed to an unsecured $25 million revolving credit
facility with Bank One, Columbus, NA.  Management of the Company determined
that, based on recent financial information, this credit facility was no longer
necessary, and accordingly, the facility was allowed to expire in June 1997.

At July 31, 1997, the Company is owed $70.6 million by Parent, due primarily
for income tax benefits resulting from the Company's pretax losses for the
nineteen months ended July 31, 1997.  The Company is part of the calendar year
consolidated U.S. tax filings of the Parent.

The Company believes that the proceeds from the public offering of common stock
coupled with the receipt of tax benefits from Parent will be sufficient to meet
the  Company's  presently  anticipated funding  requirements.   Thereafter,  if
internally generated cash is insufficient to meet the Company's capital  needs,
the Company may be required to seek additional sources of funds.


RESULTS OF OPERATIONS

The analysis that follows should be read in conjunction with the Consolidated
Statements of Operations.

In September 1995, the Company began to collect and track subscriber retention
data based upon the month a subscriber signed up.  With over 12 months of data,
this now provides the most accurate means for measuring subscriber retention.
Retention statistics were previously aggregated and calculated in quarterly
pools.

For the quarter ended July 31, 1997, the Company had retained, on average, 57%
of new CSi subscribers after 3 months, 41% after 6 months, 34% after 9 months
and 30% after 12 months on the service.  In the immediately preceding quarter,
the Company had retained, on average, 54% of new CSi subscribers after 3
months, 42% after 6 months, 35% after 9 months and 31% after 12 months of
service. In the first quarter of last fiscal year, the service retained 57% of
new subscribers through its first three months of membership, 47% after 6
months, and 45% after 9 months.  Retention rate information after 12 months was
not available in the first quarter of 1996.  Since April 30, 1996, the Company
has generally seen a small but steady decline in its CSi quarterly subscriber
retention rates.  However, in the first quarter of 1997, the Company
experienced an improvement in its 3-month retention rate which is reflective,
in part, of the Company's refocused marketing efforts to the business,
professional, and technical user communities.  There can be no assurance that
the Company's subscriber retention rates or member net revenues will not
decline further.

In August 1997, in an effort to increase the CSi subscriber base and improve
subscriber retention, the Company announced the introduction of  a $24.95 per
month flat-rate pricing option in the United States and Canada.  The new
pricing plan will first be offered to existing CSi subscribers as of October 1,
1997.  The plan provides unlimited access to the Internet plus the basic
CompuServe Interactive service for a single, flat rate with some value-added
surcharged services continuing to carry additional fees.

Except for historical information contained herein, the statements contained
herein are forward looking statements that are subject to risks and
uncertainties which could result in the Company's inability to meet its funding
requirements for the time period indicated or to reach or exceed the break-even
point during the 1998 fiscal year.   Such risk and uncertainties include the
risk that the Company's new pricing program and related marketing strategies
will not produce the anticipated results.


Three Months Ended July 31, 1997 Compared to Three Months Ended July 31, 1996

Interactive Services Revenues.  Interactive Services revenues decreased 12.1%
to $124.2 million from $141.4 million reported in the first quarter of fiscal
1997.  The decrease in Interactive Services revenues was primarily the result
of a decrease in the Company's U.S. subscriber base.  Since July 31, 1996, the
Company has seen a decline of 486,000 in its U.S. subscriber base.  This
decrease in subscribers is attributable, in part, to a decline in the Company's
acquisition marketing efforts which occurred during the second half of fiscal
1997 while the Company refocused its CSi flagship service in the U.S. toward
the business, professional, and technical user communities.  At July 31, 1997,
the Company had 2.9 million direct subscribers worldwide, and a total of 5.3
million subscribers including NIFTY SERVE subscribers, a distinct online
service owned and managed by the Company's Japanese licensee.

The number of CSi subscribers at July 31, 1997, exclusive of NIFTY SERVE
subscribers, decreased 13.8% to 2.6 million from 3.1 million last year.  The
average monthly CSi total revenue per subscriber (including fees, usage,
product sales, online advertising, mall, magazine and CD-ROM revenues)
increased to $14.58 for the quarter from $14.48 for the first quarter of
fiscal 1997.   The average monthly CSi revenue, from fees and usage only,
increased to $14.40 for the quarter from $14.20 for the first quarter of
fiscal 1997.

Interactive Services revenues also includes fees earned from SPRYNET, the
Company's Internet-access only subsidiary.  Subscribers to SPRYNET increased to
287,000 as of July 31, 1997 compared with 163,000 as of July 31, 1996.

Network Services Revenues.  Network Services revenues increased 27.2% to $75.4
million from $59.3 million in 1996, while the number of customers increased
24.6% to 1,257.  The increase in revenue was due to the increase in the number
of network customers and higher usage by existing customers.

Other Revenues.  Other revenues decreased 22.9% to $6.1 million from $8.0
million. The decrease in Other revenues is due primarily to decreased
utilization by the Company's commercial timeshare customers combined with a one-
time $0.8 million gain on the sale of a minority-interest investment recognized
in the prior year.  These decreases in other revenues are offset by an increase
in corporate remote computing services and fees from H&R Block Tax Services for
electronic tax filing support.

Costs of Revenues.  Costs of revenues consist primarily of data communication
costs, royalties paid to information and service providers, salaries and other
costs associated with providing customer support and operating the data centers
and related property and other direct costs.  Costs of revenues decreased as a
percent of total revenues to 56.9% from 67.0% in 1996.  The 10.1 percentage
point decrease is largely attributable to lower customer service costs (4.2
percentage points) due primarily to the discontinuation of WOW!, lower royalty
expense (3.3 percentage points) due to a decline in the subscriber base and
decreased usage, a decrease in salaries and other related costs (1.3 percentage
points) due to operations staff reductions, and lower subscriber collection
costs (1.1 percentage points) due to changes in the acceptable forms of
subscriber payments.

Marketing.  Marketing expenses include costs incurred to acquire and retain
subscribers, the Network Services sales organization and other marketing
expenses.  Effective May 1, 1995, acquisition costs for online subscribers were
deferred and charged to operations over 24 months beginning the month after
such costs were incurred, with 60% amortized in the first twelve months.
Effective February 1, 1996, the Company further changed the method for
accounting for these costs, which did not have a material impact on these
expenses.  Effective in the second quarter of fiscal 1997, deferred acquisition
costs for online subscribers were charged to operations over 24 months, with
50% amortized in the first three months, 30% in the next 9 months and 20% in
the subsequent year.

Marketing expenses as a percent of total revenues decreased in fiscal 1998 to
21.9% (18.7% before deferral of subscriber acquisition costs) compared to last
year's 28.3% (32.0% before deferral of subscriber acquisition costs).  The
decrease in marketing expenses is primarily attributable to the cancellation of
the WOW! online service in January 1997.  The decrease is also attributable to
the refocusing of the Company's CSi flagship service in the U.S. to the
business, professional, and technical user communities.

General and Administrative.  As a percent of total revenues, general and
administrative expenses increased to 6.1% in 1997 from 4.6% in 1996 primarily
reflecting higher accruals for full-year incentives based upon the Company's
better-than-planned financial performance to date.

Depreciation and Amortization.  Depreciation and amortization as a percent of
total revenues increased to 14.4% in 1997 from 12.9% in 1996.  The increase in
depreciation and amortization expense reflects the continued investments in
upgrading the network infrastructure and the migration to the 32-bit platform
for the CompuServe Interactive service.

Product Development.  Product development costs decreased slightly over last
year to 2.9% of revenues for 1997 from 3.4% in 1996.  This reflects the effort
behind the migration to a web-based information service, major portions of
which are at or nearing completion combined with lower costs due to the
cancellation of the WOW! service.

Nonrecurring items.  In the first quarter of fiscal 1997, the Company  incurred
a  nonrecurring pretax charge of $17.7 million relating to the sale of  certain
assets  and  business operations of the corporate computer  software  group  of
SPRY,   Inc. ("SPRY",  a  wholly-owned  subsidiary  of  the   Company);   the
consolidation  of  U.S.-based  staff  functions  and  office  facilities;   the
renegotiation of certain third-party customer service agreements; and the write-
off  of  certain  obsolete  software costs for  billing  and  customer  service
systems.   Of the total charge, $9.8 million required the outlay of  cash;  the
remaining  $7.9  million  involved no commitment  of  funds.   No  such  charge
occurred in the first quarter of fiscal year 1998.

Income Taxes.  The effective tax rate decreased to 31.2% for the first quarter
of fiscal 1998 from 38.4% for fiscal 1997 primarily reflecting reduced state
income tax benefits.


                          PART II - OTHER INFORMATION


Item 1.  Legal Proceedings.

     During  fiscal 1997, the Company, certain current and former officers  and
     directors  of  the  Company, and Parent were named as  defendants  in  six
     lawsuits  pending before the State and Federal courts in  Columbus,  Ohio.
     All but two of the original six cases were brought as putative class 
     actions.  All the suits allege similar violations of the Securities Act of
     1933 based  on assertions of omissions and misstatements of fact in
     connection  with  the Company's public filings related to its initial
     public offering.   Relief sought in each suit is unspecified, but includes
     pleas for rescission  and damages.  One purported class action lawsuit was
     voluntarily dismissed  by the plaintiffs and such plaintiffs have joined in
     one of  the  remaining class  action lawsuits in Federal court.  The other
     Federal lawsuit  names the  lead  underwriters  of  the  Company's  initial
     public  offering  as additional  defendants  and  as  representatives of a
     defendant   class consisting  of  all underwriters who participated in such
     offering.   The Federal  suits  are both subject to pending motions to 
     dismiss  filed  on behalf  of  the  defendants,  and they are  expected  to
     be  consolidated pursuant to a scheduling order that has been entered in
     the first  Federal lawsuit.   The  first State court lawsuit also alleges
     violations  of  the Ohio  Securities Code and common law of negligent 
     misrepresentation, while another  State lawsuit alleges violations of
     Colorado, Florida,  and  Ohio statutes and common law of negligent
     misrepresentation in addition to  the 1933  Act claims.  Three of the
     State lawsuits have been consolidated  for discovery.  A fourth State
     lawsuit was filed within the last 30 days,  and is  expected  to  be 
     consolidated with the other State  lawsuits  in  due course.  The
     defendants are vigorously defending these lawsuits.

     During   fiscal   1997,   TeleTech   Teleservices,   Inc.   and   TeleTech
     Telecommunications,  Inc. (collectively, "TeleTech") commenced  an  action
     in  the  United States District Court, Southern District of  Ohio  against
     CompuServe  Incorporated  for alleged violations  of  certain  outsourcing
     contracts  between TeleTech and CompuServe Incorporated primarily  related
     to  the  WOW! online service.  Teletech seeks recovery under a  liquidated
     damages  provision and other compensatory damages, but has not asserted  a
     specific  amount  to  which it believes it would be entitled.   CompuServe
     Incorporated  has  filed  counterclaims  alleging  multiple  breaches   by
     TeleTech  of  the  outsourcing contracts, including  breach  of  fiduciary
     duty,  breach  of  confidentiality, and  breach  of  the  non-compete  and
     employee  non-solicitation  provisions of  the  outsourcing  contracts  by
     TeleTech.    The  Company  believes  it  has  meritorious   defenses   and
     counterclaims, and is vigorously pursuing this litigation.

     The  Company  in  the  ordinary course of business is threatened  with  or
     named  as  a  defendant  in  various lawsuits.   It  is  not  possible  to
     determine  the ultimate disposition of these matters; however,  management
     is  of  the  opinion  that, except for the matters described  herein,  the
     final resolution of any threatened or pending litigation is not likely  to
     have  a  material  adverse  effect  on the  financial  statements  of  the
     Company.



Item 6.  Exhibits and Reports on Form 8-K

     (a)  (27)   Financial Data Schedule.

     (b)  None

                                  SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                              COMPUSERVE CORPORATION



Date  September 3, 1997                 By:   /s/ Lawrence A. GyeneS
     --------------------                     Lawrence A. Gyenes
                                              Executive Vice President
                                              and Chief Financial Officer
                                             (Principle Accounting Officer)