Concept:
A line will be a common tangent to both the circle and the ellipse if it satisfies the tangency condition for each curve simultaneously.
The circle
\[
x^2+y^2=16
\]
has centre at the origin and radius \(4\).
The ellipse
\[
7x^2+25y^2=175
\]
can be written as
\[
\frac{x^2}{25}+\frac{y^2}{7}=1.
\]
The common tangents obtained will form a quadrilateral. After determining the equations of these tangents, we find the vertices of the quadrilateral and then compute its area.
Step 1: Write the ellipse in standard form.
Dividing by \(175\),
\[
\frac{x^2}{25}+\frac{y^2}{7}=1.
\]
Thus,
\[
a^2=25,\qquad b^2=7.
\]
Hence
\[
a=5,\qquad b=\sqrt7.
\]
Step 2: Take the equation of a tangent in slope form.
Let the tangent be
\[
y=mx+c.
\]
For the ellipse
\[
\frac{x^2}{25}+\frac{y^2}{7}=1,
\]
the condition of tangency is
\[
c^2=25m^2+7.
\]
Step 3: Use the tangency condition for the circle.
For the circle
\[
x^2+y^2=16,
\]
the distance of the centre \((0,0)\) from the tangent must equal the radius \(4\).
Therefore,
\[
\frac{|c|}{\sqrt{1+m^2}}=4.
\]
Squaring,
\[
c^2=16(1+m^2).
\]
Step 4: Equate the two values of \(c^2\).
Since the line is tangent to both curves,
\[
25m^2+7=16(1+m^2).
\]
Expanding,
\[
25m^2+7=16+16m^2.
\]
\[
9m^2=9.
\]
\[
m^2=1.
\]
\[
m=\pm1.
\]
Step 5: Find the corresponding values of \(c\).
Using
\[
c^2=16(1+m^2),
\]
and \(m^2=1\),
\[
c^2=16(2)=32.
\]
\[
c=\pm4\sqrt2.
\]
Hence the four common tangents are
\[
y=x+4\sqrt2,
\]
\[
y=x-4\sqrt2,
\]
\[
y=-x+4\sqrt2,
\]
\[
y=-x-4\sqrt2.
\]
Step 6: Determine the vertices of the quadrilateral.
Intersecting
\[
y=x+4\sqrt2
\]
and
\[
y=-x+4\sqrt2,
\]
gives
\[
x=0,\qquad y=4\sqrt2.
\]
Similarly, the four vertices are
\[
(0,4\sqrt2),
\]
\[
(4\sqrt2,0),
\]
\[
(0,-4\sqrt2),
\]
\[
(-4\sqrt2,0).
\]
Thus the quadrilateral is a square.
Its diagonals are
\[
8\sqrt2
\]
and
\[
8\sqrt2.
\]
Step 7: Compute the area.
Area of a rhombus (or square) in terms of diagonals:
\[
\text{Area}
=
\frac12 d_1d_2.
\]
Hence
\[
\text{Area}
=
\frac12(8\sqrt2)(8\sqrt2).
\]
\[
=
\frac12(128).
\]
\[
=64.
\]
Step 8: Final Answer.
\[
\boxed{64}
\]