Two businesses on 1 domain - diluting the authority of both?

Hey,

Does anyone know if having these two businesses on the same domain is harming both?

• Business 1 - Fin News (on main domain)

• Business 2 - Lifestyle mag. (subdirectory of main domain)

I’m wondering if business 2 is negatively affect business one, especially given business 1 is in the YMYA category.

I’ve read a case study from a local agency that managed a health insurance businesses’ SEO. They ended up having to move their blog content to a sub domain because of a Google update back in ‘17 that was around content relevancy (the blog had recipes to coincide with the health angle, but apparently Google didn’t like that and their insurance terms started to dip until the content was moved).

Just wondering if the same could be affecting my situation?

Cheers,