The Rockets had an eye on Donatas Motiejunas for a long time, and in the end, they wound up moving up a few spots to select him.
Per Yahoo!'s Adrian Wojnarowski, the Rockets will send the No. 23 overall pick, a future first round pick, and Brad Miller to the Timberwolves for the rights to Motiejunas and point guard Jonny Flynn. Flynn has long been on the Houston radar, and perfectly fits into GM Daryl Morey's buy-low philosophy. He'll likely spend most of his time on the bench hanging out next to Hasheem Thabeet as Kyle Lowry runs the show.
Brad Miller had undergone microfracture surgery this offseason and was not likely to be a part of the rotation. With ex-Rockets head coach Rick Adelman out, Miller had lost his biggest backer on the team.
Motiejunas was highly regarded by the Rockets, and he better be for that future first round pick price tag. Some teams were scared away by his mental makeup, but Houston apparently thinks he has the potential to be a star. That was enough to pull the trigger despite the high price.
Edit: The future first rounder sent to Minnesota is the pick that the Rockets got in the Shane Battier deal earlier this year. John Hollinger describes it as "more heavily protected than Fort Knox."
Edit 2: According to Marc Stein's Twitter, the Rockets also send the 38th overall pick to Minnesota in this deal. Haven't seen this reported anywhere else, so we'll have to see if that actually holds.