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Please no. Of all studios... Illumination? UGH.
This pains me as someone who's going into animation for their career. While the Despicable Me movies and Minions are the worst offenders to many, I just generally don't think this studio is strong in any of their content. If they couldn't even make Secret Life of Pets and Sing at least decent, I shudder at the thought of what they'd do to Mario. This is all my opinion, but I don't think they're able to really see the potential in the concepts they come up with. The only film I like of their's is the first Despicable Me. It was all downhill after that.
Rant aside, my point is that I don't think this studio would do Mario any justice. Blue Sky or Warner Bros. Animation would be my picks, considering Disney/Pixar and Dreamworks seem unrealistic to me.
Also... Chris Meledandri? NOOOO, pleaseeee no.
This is going to be a very worrisome next few years. Let's hope Nintendo doesn't actually go through with this.