Shares in musicMagpie dropped more than 25% after BT Group PLC followed Aurelius in ruling out a bid for the online seller of second-hand electrical goods.
In a statement BT said that "it is not intending to make an offer" for the firm, while musicMagpie said Aurelius Investment Advisory Ltd has also said it does not intend to make an bid.
The firm said it continues to seek potential buyers and, as such, remains in an offer period.
Last Monday, musicMagpie confirmed it was holding talks with both BT and Aurelius Group over a possible bid for the firm.