The sure sign of a bubble

Now it seems that it is true that Google is in talks to acquire YouTube (See Techcrunch )
While I understand audience as a value, what is really this for? From what I have seen, and despite interesting experiments on what can be done in terms of entertainment and next generation reality TV, why would Google care about YouTube. From the reports I read, YouTube is loosing money and had no real revenue model that is worth anything.
Google might as well let them disappear and pick up the left-overs.
If you were wondering whether there is a bubble looming behind the web 2.0 hype, now you know...