The company, once a pioneering internet giant, is selling off the bulk of its operations and changing its name to Altaba.
Yahoo boss Marissa Mayer is to quit the troubled tech firm if the $4.8bn (£4bn) sale of its digital services to Verizon goes ahead.
The company will also be renamed Altaba, although telecoms company Verizon is expected to retain the Yahoo brand.
Under the deal, Yahoo is selling its email service, websites, mobile apps and advertising tools to Verizon.
In its new guise as Altaba, it will become a holding company for investments in Chinese e-commerce giant Alibaba and Yahoo Japan that are together worth more than $40bn (£33bn).
Chief executive Ms Mayer, co-founder David Filo and four other directors on the current 11-member board will resign after the sale to Verizon closes, the company disclosed.
But the deal has been jeopardised by Yahoo's recent discovery of two computer hacking attacks that stole personal information from more than one billion user accounts in 2013 and 2014.
Verizon is looking at whether it should renegotiate the deal in the light of the revelations amid fears that they could trigger a backlash among Yahoo users.
Yahoo - led by Ms Mayer since July 2012 - was once an internet powerhouse before being overtaken by the likes of Google, Amazon and Facebook.
Despite falling out of fashion, it still boasts hundreds of millions of users.