Google Rearing up to by yahoo?

Story is that Google is gathering info to buy yahoo, meanwhile they just purchased a large office space to house thousands of employees.
Speculations:
Could this be to house the Yahoo employees that keep?
Could this be to just start a whole new venture, and by checking the cost of yahoo, they will start a new place and use the yahoo value as the bar for expense limits?
Could this all be a distraction?
What will this mean for Yahoo/Msn Handshake?
Are they just going to shut down the rights to all yahoo code?

One thing sure we can count on, is if Google buys out yahoo’s search engine and patents, there will be lots of toolbars coming down.