Shares of Endeavor Group (EDR -0.17%) soared 27.2% this week, according to data provided by S&P Global Market Intelligence, after the sports and entertainment company announced a review of strategic alternatives.

One thing Endeavor Group won't consider

In a press release Wednesday, Endeavor Group announced it has initiated a "formal review to evaluate strategic alternatives for the company" -- a process that typically implies a company is exploring a potential acquisition offer or a divestment of assets.

"Given the continued dislocation between Endeavor's public market value and the intrinsic value of Endeavor's underlying assets, we believe an evaluation of strategic alternatives is a prudent approach to ensure we are maximizing value for our shareholders," stated Endeavor CEO Ariel Emanuel.

Endeavor's review came with one big caveat: The company insisted that it will not consider merely selling its majority stake in TKO Group Holdings (TKO -0.95%), a business comprised of Ultimate Fighting Championship (UFC) and World Wrestling Entertainment (WWE). Endeavor Group also owns entertainment agency WME and media company IMG.

An unsurprising suitor emerges

Shortly after Endeavor Group's press release hit the wires, private equity firm Silver Lake revealed it's working on a proposal to take Endeavor Group private. Silver Lake already controls roughly 71% of Endeavor's total voting rights, and noted in its own announcement that it is not entertaining bids for its stake and will not be considering selling to a third party.

Endeavor says it hasn't set a deadline or timetable for the completion of its review, and there are no guarantees a deal will be made. But for now, given the prospect of an even greater juicy acquisition premium if Silver Lake opts to buy the remaining stake in Endeavor Group it doesn't already own, it's hardly surprising to see shares rallying in response.