Abdullah ibn Ubayy is well known as the chief of the hypocrites in Medina; however with a cursory search I could not find anything linking him to this verse.
Rather, Nadr ibn al-Harith is claimed in some traditions to be the person regarding whom this verse was revealed. He purchased singing slave-girls for the purpose of detracting people from Islam. Whenever he would come across a person leaning towards accepting Islam, he would take them to his slave-girls and instruct them to give the guest food and drink and to sing for them. Then he would say: "This is better than what Muhammad (ﷺ) invites to: prayer, fasting and conflict(?)" - (Qurtubi)
It is also reported that he would go to Hirah and Shaam to purchase story books. He would occupy the Quraysh in the tales of Rustam and Esfandiyar and stop them from listening to the Quran, and would claim that his tales were better than the teachings of the Prophet. - (Qurtubi , Baghawi etc.)
The most prevalent exegesis of the verse is that لهو الحديث means الغناء (singing); this is the tafseer reported from Abdullah ibn Masud, Ibn Abbas, Ayesha, Jabir ibn Abdullah, Abu Umamah, Hasan al-Basri, Mujahid ibn Jabr, Sa'id ibn Jubayr, Ibrahim al-Nakhai and others.