Roli, the modular musical instrument business backed by Pharrell Williams and Grimes, has entered administration in the UK, the company has confirmed. It will now relaunch as Luminary, with an emphasis on beginning rather than professional musicians, the company said. 

Luminary will be led by Roli founder and CEO Roland Lamb. Roli had approximately 70 employees who will move to Luminary, which will also retain Roli's intellectual property and assets. However, Roli raised some $76 million from institutional investors, some of whom will lose their money, according to the report. 

The company launched with the Seaboard modular keyboard and Blocks modular system designed to let you play tunes, tap out beats and do loops while recording music with an iPhone or iPad. It followed up with Lumi Keys, an electric light-up piano designed to help novices learn to play. 

Luminary

However, Lamb said that the company's early focus on professional musicians and tinkerers limited its potential for growth. "Ultimately, what happened was the pro-focused products we initially developed, although successful within their marketplace, the marketplace wasn't big enough given our venture trajectory," he told Business Insider. In 18 months up to June 30th 2019, the company lost £34.1 million ($47.1 million) on revenue of just £11.4 million ($15.8 million). 

As such, Luminary will now focus on learning to read music and play piano with the aim of becoming "Peloton for piano." To that end, it will offer the $300 Lumi Keys keyboard and an $80 yearly app subscription, along with a basic free tier. It will also relaunch the Seaboard, which has been out of stock recently. "I've learned a lot about how to operate in new ways that are better... so I'm excited about this next stage," Lamb said. 

PayPal is “exploring” the idea of allowing its users to trade individual stocks. Per CNBC, the company recently hired TradeKing co-founder Richard Hagen to head up a new unit at the company called Invest at PayPal. “Leading PayPal’s efforts to explore opportunities in the consumer investment business,” Hagan says of his new job on his LinkedIn profile. The outlet reports PayPal has also had discussions with potential brokerage partners.

Moving into retail trading wouldn’t be out of character for PayPal. The company has spent much of the last year expanding into the cryptocurrency market. It all started last October when PayPal announced it would let US users buy, sell and hold Bitcoin, Ethereum, Bitcoin Cash and Litecoin. PayPal CEO Dan Schulman also recently told investors the company could partner with different financial institutions to expand the number of services it offers. He even mentioned “investment capabilities” as one possibility. Either way, it’s a move that would make sense in the context of all the recent interest in retail trading that came out of the GameStop saga.

A PayPal spokesperson declined to comment on the report when we reached out.

Should PayPal decide to offer stock trading, it may take some time before it’s available to US users. CNBC reports PayPal is unlikely to roll out the service this year. And if the company decides it wants to operate as its own brokerage firm, it would need approval from the Financial Industry Regulatory Authority (FINRA). That’s a process that can take more than eight months.

Virgin Orbit has announced plans to go public on the Nasdaq stock exchange through a special purpose acquisitions company (SPAC) merger. The deal with NextGen Acquisition Corp. II values Virgin Orbit at $3.2 billion.

The combined company is expected to pull in up to $483 million in cash when the deal closes, which Virgin Orbit believes will happen by the end of this year. Around $383 million of that is expected to come from funds NextGen holds in trust, and the other $100 million from a common stock PIPE (private investment in public equity) offering at $10 per share. Virgin Orbit's existing stakeholders will own around 85 percent of the combined company, with NextGen shareholders owning about 10 percent, PIPE investors (which will include Boeing) holding roughly three percent and the SPAC sponsor owning the remaining two percent or so.

Virgin Orbit will use the funds to scale up its rocket manufacturing endeavors and bolster the company's space solutions business and Virgin Orbit’s ongoing product development initiatives. An SPAC merger with a company (usually a shell corporation) that's already listed on a stock exchange allows a business to go public without going through the usual initial public offering process.

The first spaceflight company to go public through an SPAC, and the company that really kicked off the SPAC trend, was Virgin Galactic back in 2019, which sought to fund its tourist trips to space. Virgin Galactic spun out Virgin Orbit as a separate company in 2017 so they could respectively focus on space tourism and small satellite launches. Virgin Galactic held its first fully crewed flight in July (with founder Richard Branson on board), while Virgin Orbit had its first successful satellite deployment in January.

Virgin Orbit launches its satellites from a custom Boeing 747, with the LauncherOne rocket taking payloads into space. The company says this approach offers a "significant performance advantage" over traditional ground launches (an approach adopted by the likes of SpaceX) while lowering "local carbon emissions and acoustic impacts" at launch sites.

It's official. Sony now owns both Crunchyroll and Funimation. The company's Sony Pictures division completed the $1.175 billion acquisition on Monday. And with the deal now closed, Sony Pictures CEO Tony Vinciquerra said the company's goal is to "create a unified anime subscription experience as soon as possible."

Sony didn't say how soon we could see that happen and what form that "experience" will take. For the time being, Funimation and Crunchyroll will continue to exist as separate streaming platforms, with few details on what the deal means for subscribers.

"With the addition of Crunchyroll, we have an unprecedented opportunity to serve anime fans like never before and deliver the anime experience across any platform they choose, from theatrical, events, home entertainment, games, streaming, linear TV — everywhere and every way fans want to experience their anime," Vinciquerra said.

Sony first announced it was acquiring Crunchyroll from AT&T at the end of 2020. At the time, the service said it had 3 million subscribers and over 90 million registered users across more than 200 countries. Less than a year later, Crunchyroll notes those numbers have increased to 5 million and 120 million, respectively.

Renault is looking to revive flagging sales in China. It has agreed to set up a joint venture with a major auto manufacturer in the country. Renault will share tech and resources with Geely (which owns Volvo and Polestar) to bring Renault-branded hybrid vehicles to China.

The companies plan to take advantage of Geely's supply chain and manufacturing capabilities. Renault will focus on sales and marketing.

Along with China, the companies are eyeing South Korea as a key market for their joint venture. They plan to sell localized versions of hybrids from Geely's Lynk & Co brand.

The joint venture will likely expand to other Asian markets in the future, according to Reuters, which reported that Renault and Geely are considering making fully electric vehicles as well. Renault recently announced an ambitious timeline for electrifying its vehicles. It forecasts that 65 percent of its lineup will be electric by 2025.

Having a partnership in China seems important for Renault, which has struggled to sell cars under its own name in the country. It sold just 2,324 Renault-branded cars there in 2020, a drop of 89 percent from the previous year, amid the COVID-19 pandemic and the global semiconductor shortage. In comparison, Jinbei and Huasong, brands owned by a joint venture between Renault and Brilliance Auto, sold 154,049 vehicles in China last year.

DirecTV is now its own company again after AT&T closed the deal with private equity firm TPG, which it first announced back in February. Under their agreement, TPG would own 30 percent of the spinoff, while the mobile giant will retain a 70 percent ownership. As its own company, DirecTV will no longer operate under AT&T and will own and run the AT&T TV and U-verse video services under a single brand known as "DirecTV Stream" debuting later this month. The new spinoff says customers won't even feel the transition: The streaming services will continue being available and subscribers won't be blindsided by hidden fees.

AT&T received $7.1 billion in cash for the sale, which is but a tiny fraction of the $49 billion it originally paid when it purchased DirecTV in 2015. Back then, former AT&T CEO Randall Stephenson said combining DirecTV with AT&T "is all about giving customers more choices for great video entertainment integrated with mobile and high-speed internet service." According to Los Angeles Times, AT&T has lost 40 percent of the DirecTV's original subscriber number since then, and in the second quarter of 2021, DirecTV reported having 15.4 million premium video subscribers.

The telecom giant has been trying to offload DirecTV since at least 2019, but it hasn't announced anything concrete until earlier this year. This deal doesn't include the HBO Max streaming service, which will be part of the company's separate WarnerMedia spinoff. In May, AT&T announced a $43 billion deal that would see its WarnerMedia division merge with Discovery. It's expected to close in mid-2022, four years after AT&T finalized its $85 billion acquisition of Time Warner. Both that deal and this DirecTV spinoff will help AT&T's debt reduction efforts. As Deadline notes, it has taken several steps, including selling off assets, over the past few years to reduce the debts it has acquired due to its massive multimedia acquisitions.

Newly public Robinhood has ambitions to be much more than just a stock-trading app, according to its CEO. In an interview with the AP, CEO Vlad Tenev said that, eventually, he wants to turn Robinhood into “the single money app” his users need.

Though Tenev didn’t use the word “bank,” his description certainly sounds more like a bank than the current iteration of Robinhood.

Over time, we want to be the single money app, the most trusted and most culturally relevant money app worldwide. So, everything that you use your money for, you should be able to do through Robinhood.

Anytime you receive a paycheck direct deposit, we’d like you to do that through Robinhood. Your emergency fund, your bill pay, your day-to-day spending, we’d like for customers to use us for that. And of course, all types of investing ranging from more discretionary investing to long-term retirement savings as well.

Tenev didn’t elaborate on exactly how these plans could take shape. And though it’s not necessarily surprising the company would want to expand the types of services it offers, the CEO’s comments will likely raise more than a few eyebrows.

The app, which became popular for its simple interface and commission-free trading, has also drawn criticism for many of its practices. The SEC fined the company $65 million last year, for misleading users about how it executes trades. It was also hit with a class action lawsuit earlier this year after it restricted trading on GameStop and other “meme stocks.” The company has also been accused of making the stock market feel too much like a casino, particularly for younger and less-savvy investors.

In its latest earnings release, Samsung confirmed that it will release new foldable smartphones soon and attempt to make the category "mainstream." It also showed that it doesn't need mobile to make money, as it boosted earnings by 20 percent to 63.67 trillion won ($55.56 billion) and saw an operating profit of 12.57 trillion won ($11 billion). That's despite the fact that its mobile division saw revenue fall over the previous quarter due to component shortages and COVID-related factory issues. 

As you might expect given the current shortage, Samsung's chip business dominated its earnings this quarter, accounting for more than a third of total revenue and over half its profits. That was helped by price increases in categories like memory and display panels. The company's consumer electronics division also saw growth thanks to premium TV sales and appliances. 

While the mobile division fell off due to weaker seasonal demand, a component shortage and COVID-related closures at its Vietnam factories, the company did make some interesting comments about the business. It said it would "solidify its leadership in the premium [mobile] statement by mainstreaming the foldable category" — meaning we might see cheaper foldable phones in the near future. 

Samsung revealed that it's working on new under-screen camera technology, as well. It also confirmed that it would introduce new foldable products soon, likely referring to its August 11th event in which its expected to announce follow-ups to the Z Flip and Z Fold 2. 

Facebook users are spending a lot more time watching video, and short-form video like Instagram Reels is growing fast. Speaking during the company’s second-quarter earnings call, CEO Mark Zuckerberg said that “video now accounts for almost half of all time spent on Facebook.” And on Instagram, TikTok competitor Reels is the “largest contributor to engagement growth.”

Though he stopped short of sharing more specific stats, the new details suggest Instagram’s Reels may be gaining more traction as the company vies for creator talent. Zuckerberg also noted that the company’s focus on creators and shopping would also help it reach its longer term goal of becoming a “metaverse company.”

Facebook revealed earlier this week that it was tapping an Instagram exec to start a new team focused on creating a metaverse. “You can kind of think about this as an embodied internet that you're inside of rather than just looking at,” Zuckerberg said. “You're basically gonna be able to do everything that you can on the internet today, as well as some things that don't make sense on the internet today like dancing.”

Zuckerberg’s comments come as the company reported some of its strongest growth in years, with revenue of more than $29 billion, an increase of 56 percent from last year. The company also reported more than 3.5 billion “monthly active people,” though user growth in the US once again remained flat.

Despite the strong numbers this quarter, the company warned that the rest of 2021 could look very different. Facebook expects revenue and growth to “decelerate significantly” in the second half of the year, said CFO Dave Wehner. He also noted that Apple’s iOS 14.5 update, which allows users to opt out of the social network’s ad tracking, would have a “greater impact” next quarter.

Developing...

Last week, news leaked out that Rivian was planning to build a second US manufacturing plant for its electric vehicles and batteries, and now more details have leaked out. The company plans to invest $5 billion initially in the second plant, dubbed Project Tera, with construction slated to start in the fall of 2021, according to Reuters. The aim is to begin production by the second quarter of 2023. 

The second plant will reportedly include a 50 gigawatt-hour (GWh) battery cell production operation and a product and technology center. There's no word on where it'll be built, but the company is reportedly looking at land east of Mesa, Arizona, near Gold Canyon, according to Reuters' sources. Rivian Chief Executive R.J. Scaringe has reportedly spoken with Arizona Governor Doug Ducey about the project.

Rivian previously acknowledged that it's looking to expand. “The company has recognized that future production and product plans will not be fully met by the current capacity at Rivian’s Normal, Illinois facility,” it said in the document seen by Reuters. 

The plant would supposedly support around 10,000 jobs, though many of those could come indirectly. For a startup that has so far not produced a single vehicle, however, the investment and job figures would be impressive. Rivian is backed by Ford, Amazon and other companies and could reportedly soar to a $50 billion value in a possible public listing later this year, according to Reuters' previous story.