Machado is tallying several career-high figures for the first half, including home runs (23), RBIs (64), OBP (.384) and OPS (.950).
The Orioles had discussed possible trade combinations for Machado with the Philadelphia Phillies, Brewers, New York Yankees, Atlanta Braves, Diamondbacks and Cleveland Indians. Rosenthal also reports Baltimore will not be sending any money to Los Angeles as a part of the deal, but the Dodgers are still projected to remain under the luxury-tax threshold.
Despite the Orioles having a bad season, sitting in last place in the American League East, the 26-year-old has continued to put up solid numbers, batting.315/.387/.575 with 24 home runs and 65 RBI.
"Manny Machado provided Orioles fans with many great memories over his eight years in Birdland", Duquette said in a statement immediately following the trade.
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The 21-year-old Diaz hit two home runs in the All-Star Futures Game last weekend.
"We liked the depth of the Dodger package, we liked the quality of the players in the package, and we liked Yusniel Diaz, a player we feel is a gifted hitter, " Duquette told reporters on the call. "We hope he plays well and creates a good market for himself. But the other players in the trade are also very talented".
During Tuesday's Major League Baseball All-Star game it was all but confirmed by most baseball writers that Machado was coming to LA for some prospects.
Machado was drafted by the Orioles with the third overall pick in 2010 and has been a starter in Baltimore since 2012.