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You can use the Logrotate utility which is there in linux to rotate the standard out file
under /etc/logrotate.conf file append a function to handle *.out files
Details about logrotate utility
else you can add this parameter to the server startup argument -Dweblogic.log.RedirectStdoutToServerLogEnabled=true".
u can enable it also through console as well Server -> Admin server (or Managed Server) -> Logging -> General -> Advanced Settings -> Redirect stdout logging enabled
This will redirect the stdout log to the server logs.