ESPN sources say Hornets and Rockets have discussed a potential Dwight Howard-to-Charlotte trade but have not managed to find workable deal— Marc Stein (@ESPNSteinLine) February 16, 2016
The Houston Rockets have completely imploded this season, and even though Howard doesn't appear to be part of the problem, it looks like he's going to be opting out at the end of the season. Houston has either decided that the two don't fit together very well, or that he's not going to re-sign in the summer. As a result they're currently looking around the NBA for possible destinations and it's not surprise that Charlotte gave them a call.
Everybody should have expected this rumor to pop up at some point. The Hornets are very clearly in a state where they want to win sooner rather than later, and they have the assets to make a trade with Houston for a player like Howard. However, there definitely has to be some concern about him re-signing at the end of the season or not. There's no guarantee that he will do so, and if the Hornets trade all their pieces only to be burned by Howard it could be catastrophic.
As for how Howard fits with the Hornets, he would work with the team a lot better than some might believe. He's still one of the best defenders in the NBA and would give Charlotte an incredible defense to along with their already stellar perimeter defenders. On offense, it would be just like when Howard was in Orlando with four shooters out on the perimeter and Howard inside with a heavy dose of pick and roll involving both Kemba Walker and Nicolas Batum.
However, Howard is on the wrong side of 30 and his history of injuries causes questions as to how much longer he can play at a high level. Also, the report is that the two teams are in talks. There is nothing imminent here, and it's very possible that the two sides end up not reaching an agreement.