Even if Youtube is not profitable, Google has gained a lot of power over the online video format (see also Webm), justifying the buy.

Google aims to organize all the information in the world. Video is a large part of that and that should only grow.

The same take I have on the $6B offer. Controlling a large space of the growing local/group buying market is valuable to Google.

And just imagine Groupon coupled with Google Adwords (Adwords could upsell their clientele a Groupon offer) or Google Adsense (temporary offers could show on the entire content network). Or Groupon coupled with Google Base/Google Merchant Center. Or Groupon coupled with Google Maps. The true power would come from the collaborations and the future growth where Google would have secured a place.

No matter the hard business model, social buying/local offer sites are clearly here to stay.