Given this latest round of stories, I wanted to follow-up on this post. It's pretty clear there is a very real possibility the Big 12 is going to go away. In just a few years, the Texas/Texas A&M combo will either be a part of an expanded SEC or an expanded Pac 10. It's also clear that other Big 12 schools would almost certainly be part of the package - a new western division of the SEC or eastern division of the Pac 10.
My best guess is that it will be the Pac 10. I have to agree with Don on this, if the money can be worked out, why would Texas want to deal with the competitive level it would face in the SEC.
Nebraska and Missouri are not going to wait around for that possibility. The Big 10 will expand in two phases, but these two schools will likely be in phase 1 when the league goes to 14 teams. If Notre Dame has likely turned them down (as the Chicago Tribune reported), they will leave spots open for a second phase of expansion at some point down the road.
The remaining schools in the Big 12, likely Iowa State, Kansas State, Kansas, and perhaps one or two others, will fold into the Mountain West. It will then become an AQ league. The remaining Big 12 schools will not expand, because they will have no real assurances they will have their AQ bid long-term. It will be easier to fold into the Mountain West, because that would almost guarantee that league would receive a bid and be able to hold it.
Throughout this process, Tech's concern will be if the ACC expands and kills Big East football, closing the door on Big East expansion and thus CUSA expansion. As I have previously stated in this thread, it will be much better for Tech if expansion happens in phases and Big East football survives the first phase.