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The Rockets attempted to acquire either Dwight Howard or Andrew Bynum, but they were unwilling to give up as much via trade as has been previously reported.
Houston was only offering two first round picks, though one would have come from the Raptors and has protections to make it more likely to be a lottery selection.
Many had assumed the Rockets were also offering all three first round picks from 2012, but only Jeremy Lamb had been formally made available.
Houston would only offer two players from a group that included Marcus Morris, Patrick Patterson, Jeremy Lamb, Terrence Jones, Royce White and Donatas Motiejunas.
The Rockets also offered cap relief, but never the type that the Magic sought.
"I enjoyed working with Rob on a potential deal," Daryl Morey told SI.com via text message. "He went with what was best for Orlando and over time people will see that he has made a good decision. He has a plan for Orlando and he has proved his ability to execute a plan to make franchises great from his time in San Antonio and Oklahoma City."