I saw someone say that Animal Companion reduces your pets overall damage, is this true?
Your main pet’s damage is reduced. I am pretty sure the sum total of damage from the two pets is an increase (otherwise the talent would be worthless).
Animal Companion gives you a second pet, and causes both of your pets to deal 65% of normal damage. Combined, it if definitely a DPS increase, and currently tuned to be stronger than the other talents on the row in terms of raw DPS output.
That said, the hidden debuff also applies to other pet-based sources of damage (Dire Beast, A Murder of Crows, Stampede, Spitting Cobra, and presumably any trinkets that spawn additional “pets” that fight for you), so take this into account when choosing other talents.
This is false, it does not apply to A Murder of Crows
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