The Rockets also get first-round draft picks from both teams and shipped rookie guard Ish Smith to the Grizzlies. Neither the Rockets nor the Grizzlies immediately confirmed the deals, but Grizzlies owner Michael Heisley told the Associated Press that they swapped potential for a chance to reach the playoffs this year.
"It is important to us that we make the playoffs, that we do go to the playoffs," Heisley said. "Quite bluntly, we think that Shane at this point in time would be more productive in the short run."
Memphis is 32-27 and eighth in the Western Conference. The Grizzlies have not been to the playoffs since 2006 when Battier, whom they selected sixth overall in 2001, was on the roster. He played five seasons in Memphis, helping the Grizzlies to three playoff appearances, before he was traded to the Rockets in July 2006 for Stromile Swift and the draft rights to Rudy Gay.
The 6-foot-8 Gay, the Grizzlies' second-leading scorer (19.8), is expected to miss about three more weeks after dislocating his left shoulder Feb. 15.
"I've always had tremendous admiration for him," Heisley said of Battier. "He's done a great job at Houston, and he's an experienced guy. When you get to this area of the season, it's always great to have a couple experienced guys around."
The Grizzlies also tried to swap guard O.J. Mayo to Indiana in a deal that wasn't concluded before Thursday's trade deadline. Heisley said it was a bittersweet situation because Memphis was trying to ease a crowd at guard and add help at the 2-3 position.
"Quite frankly, it might turn out for the better for us," Heisley said.
Houston (28-31) is 11th in the Western Conference, and GM Daryl Morey has said in recent weeks that virtually his entire roster was in play leading to Thursday's trade deadline.
Brooks and Battier have contracts expiring after this season, coveted commodities for teams looking to create salary-cap space. But in acquiring the 7-foot-3 Thabeet and Dragic, the Rockets are parting with two of the team's most popular players.
Brooks was a first-round draft pick by the Rockets in 2007 and shined in the 2008-09 playoff, averaging 16.8 points and 3.4 assists and nearly leading Houston to a second-round upset of the Los Angeles Lakers. He was honored as the NBA's most improved player last season, but a sprained ankle limited his production earlier this season and he wound up a reserve.
Unhappy with his playing time, Brooks left the bench during a game against Memphis on Feb. 5, and the team suspended him for a game. He was averaging 11.6 points and 3.8 assists, far below his 2009-10 averages. He was also shooting 28.4 percent from 3-point range, a career-low.
The 24-year-old Dragic is averaging 7.4 points and 3.1 assists, but he's shooting only 27.7 percent from 3-point range. Dragic has a team option for the 2011-12 season on his contract.
Battier, 32, is valued as much for his play and leadership as for his contract.
He's scheduled to make about $7.4 million this season, and has started all 59 games while averaging 8.6 points and 4.8 rebounds. He's also the team's top active shot blocker and its third-best 3-point shooter (39.5 percent).
The 7-foot-3 Thabeet has disappointed since Memphis took the native of Tanzania with the second overall pick in the 2009 draft. He's to make about $4.8 million this year and $5.1 million next season with the Grizzlies having the option for 2012-13. Thabeet, who attended high school in Houston, has averaged only 1.2 points and 1.7 rebounds in 45 games this season.
"When we drafted Hasheem, my guys told me point blank that we needed to play him a lot," Heisley said. "He needed to be on the floor. I don't think we've been able to do our part."
The Rockets have been desperate to add size since Yao Ming went down early in the season with a stress fracture in his left ankle. Chuck Hayes, at 6-6, is the shortest starting center in the NBA and 7-foot Brad Miller, acquired in the offseason to back up Yao, missed 15 games with a knee injury.
Smith, a 6-foot rookie out of Wake Forest, has bounced between the Rockets and their developmental league affiliate this season. He's averaged 2.6 points and 2.3 assists in 28 games with Houston this season.