The Los Angeles Lakers are the third team involved. The Nets will receive Sasha Vujacic and a 2011 first round pick from the Lakers and a 2012 first round pick from the Rockets. Joe Smith is on his way to LA.
This move is likely a precursor to a future move for New Jersey as it is extremely unlikely that they will be attempting to build around a guy like Vujacic. The Nets now have extra first round picks for the 2011 and 2012 drafts. They also have extra second round picks in 2012.
GM Billy King has recently declared that the team will make a move by the February trade deadline. They could be adding pieces for a run at Carmelo Anthony, although Anthony has said he will not sign an extension with any team other than the New York Knicks.
New Jersey's move to Brooklyn in two years, however, could entice him to reconsider.
There could also be more to this trade, which will become official Wednesday. No player who signed a contract this offseason can be traded until December 15. That player, of course, is Smith.
Vujacic has been a non-factor for the Lakers this year, playing less than five minutes a game. He has never averaged more than 8.8 PPG in a season, making it even more likely that this is a deal that will set up another deal.
Updating this story, it has been revealed on Wednesday that the Nets are also sending two second round picks to LA. The 2011 first-rounder they got from the Lakers is protected if it falls between the 1-18 slots and the 2012 pick from Houston is lottery protected.