[seanlinehan]

Most likely this will be done by issuing new equity. The press release states that they will exchange Twilio Class A common stock per share of SendGrid common stock. They defined the exchange ratio (that's why the price is ~$2B and not a specific number) and will issue as many shares as they need to based on that ratio:

> 0.485 shares of Twilio Class A common stock per share of SendGrid common stock

Technically, issuing new shares dilutes every existing shareholders' ownership. But, if the market deems this to be an intelligent combination that was valued correctly, the market cap of the combined company should be ~$9.4B or (ideally) more. So the goal is for existing shareholders to hold, at worst, the same amount of value in dollar terms as before or, at best, hold more value as a result of the acquisition.

[panarky]

SendGrid is up 17% while Twilio is down 3%.