This is a huge of a company to acquire, and me personally, I really hope it doesn't happen.
Knowing by how Microsoft goes with their acquisitions, it'd be an absolute disaster. Kadokawa owns so much more than just Spike and FromSoft. They own bookwalker, multiple manga/anime distribution companies. If this happens, I do truly believe creative output from the individuals who work at these companies will be cut short in order for more "data-driven, by-the-books" game design to continue. As well as priotizing Sony's IPs over Kadokawa's original works.
And as far as I can tell from all these Doom n Gloom Youtube videos posts on "why gaming sucks now," I believe it is a worse-case scenario for the JP entertainment industry if this acquisition were to happen.