Definitely more to this than meets the eye.

When EMC made the $178m offer for Iomega last week, the only explanation I could come up with that made sense is that Iomega is sitting on some sort of intellectual property that the Evil Machine Company wants. Otherwise, this is like Cisco buying Linksys, where they just want to move into the mass market. Doesn't make a lot of sense. I'm convinced on the patents/intellectual property angle now:

Iomega has changed its tune over EMC Corporation’s approach to buy the company after its suitor upped the offer to $205.5m. The storage vendor, which last week rejected an unsolicited EMC offer worth about $178m, today said it considered the revised to be superior to a proposed all-stock transaction with a stockholder. According to Iomega, the new offer will push up the bid price to as much as $3.75 per share. A week ago EMC indicated that it was prepared to offer to acquire Iomega for $3.25 per share.

EMC is entering offer-Iomega-can't-refuse territory now.