Texas announced today it is adamant on leaving the Big 12 and hopes to do so by July 2012. It will agree to pay the penalties associated with leaving the conference. The Aggies are still hoping to get in with the SEC, but it sounds like they may be open to joining any conference. The other viable options would probably be the Big 10 or the Pac-12.
If the Big 12 looks to survive as a conference, it will have to find a replacement. Current independant BYU would be a good fit. The Cougars would be able to compete in the conference and would now have better access to playing in a BCS bowl game. Southern Methodist has publicly expressed interest in joining the Big 12, but the addtion of the Mustangs would not add a new television market like the addition of BYU would in Salt Lake City, Provo, and Ogden. It is also debatable whether the 'Stangs could compete with the large state schools. Houston and Texas Christian would be able to hold their own with the current Big 12 members, but again no new television markets would be added, so taking another Texas team is not as sexy as taking a team from outside areas with Big 12 schools.
The moral of the story here is do not allow one school in a conference favoritism over the others. Profit sharing in the Big 12 is not equal like it is in the Big 10 or SEC. The Longhorn Network destroyed the Big 12 conference. If the playing field is not equal for all schools, why stick around?