Dell and Google plan to announce later on Thursday an agreement to preinstall Google software on new PCs, according to a report in The Wall Street Journal.
The Journal report (paid registration required) would confirm earlier reports that the companies were considering such an arrangement. Assuming the Journal report is accurate, Google would pay Dell a fee for installing the Google Toolbar and Google Desktop software on new Dell PCs, and Dell would also preset Internet Explorer to default to Google's search engine, not Microsoft's.
Representatives from both companies did not immediately return calls seeking comment. The partnership would allow Dell to take advantage of an additional source of revenue in the low-margin PC market, and Google would have a way of satisfying its complaints about Microsoft setting Internet Explorer to use MSN Search as its default engine.